Combining data from various sources: premiums, claims, claim reserves, administrative costs, as well as reinsurance figures.

Profitability module offers highly powerful analysis of profitability result split by:

• Financial & underwriting year (quarter).
• Product risks (e.g. material damage vs. person injury for MTPL).
• Structured claim event place.
• Risk parameters (e.g. region, customer and object insured characteristics).
• Other useful slices (e.g. sales channel, salesman, broker, unit, new / renew policy indicator, duration of policy, claim handler).

Depending on availability of market capacity statistics (e.g. number of vehicles) and its particularity Profitability module may provide extended suggestions: e.g. how many potential customers will be impacted by the decision to increase prices (what-if analysis or scenario testing).

Using Profitability module top management will:

• Review profitability of overall product or main segments (assess achievement of profitability targets).
• Look for segments with low loss ratio and large expansion possibilities.
• Assess quality of the predictions (i.e. compare reserves estimated versus real claim flow).
• Identify high level bottle necks (e.g. increased average claim payment, decreased claim frequency for portfolio or segment).
• Access profitability of strategic customers.
• Receive arguments for negotiations by checking profitability of policies sold by particular broker or employee.

Using Profitability module risk underwriter will:

• Assess risk profile of insurance contract portfolio.
• Assess adequate risk price within segments – identification of under priced and overpriced segments.
• Avoid anti-selection (decreased possibility to accept bad risks comparing with competitors) by identification and further implementation of new risk parameters.
• Monitor impact of pricing changes as well as marketing campaigns on sales volume.
• Drive efficient anti-fraud programme.

Using Profitability module actuary will:

• Access earned / unearned premiums in any segment by 360 & 365 methods for both single or multi object policies using parameters to define reporting period.
• Prepare data sets for pricing tasks.
• Calculate risk based premium using prepared data sets and dedicated statistical software.
• Develop measured reinsurance program and will provide collection of the arguments for negotiations with reinsurers.
• Upload estimated reserves back to the system. BI Insurance engine splits reserves to individual object insured level and ensures access to full profitability of any risk driven segment.
• Perform liability adequacy test.