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

Capital Modelling | The SCR bridge In the previous two editions, we looked at capital from two angles. First, we made the standard SCR component view more useful by showing it over time. Then we moved from risk modules to portfolio decisions by looking at capital intensity by segment. Those views make movement and concentration visible. The next question is more direct: what actually changed the capital requirement? The Decision Question What is driving the movement from last