The Decision Question This edition continues the Pricing Committee Pack series with a review of the model lift view. Does the proposed pricing model identify risk better than the current rating plan, and does that difference matter enough to action? A lift view belongs between the technical model build and the selected pricing action. It is the evidence page that shows whether the model is finding economically useful segmentation on data it did not train on. What Lift Means B

The Decision Question This edition starts the Pricing Committee Pack series with the first chart in the pack: the executive pricing result. The committee question is: what changes if we act on this pricing indication? A technical indication gives an anchor. The executive result should show what happens when different selected actions are considered. The Default Practice Pricing packs often show the current premium, indicated premium, indicated rate change and selected rate ch

The Decision Question When a pricing result changes, which building block moved, and does that movement make sense? Default Practice A common actuarial starting point in general insurance pricing is a set of time-series views. The period may be monthly, quarterly, accident year, underwriting year, calendar year, or policy year, depending on the line of business, the data available, and the pricing question being asked. The most frequently seen measures are: Premium Usually wr

In the previous edition, we decomposed the movement in capital. That helped explain what changed. But once the movement is understood, a simpler and sharper question remains. For every unit of premium we write, how much capital are we now carrying? A portfolio can grow premium, report a comfortable solvency ratio, and still become less attractive from a capital perspective. The issue is not only whether the SCR is increasing. It is whether the SCR is increasing faster than th