WS-5 - Advanced Ratemaking

Sometimes basic actuarial ratemaking techniques are insufficient for the job at hand. Data availability, the underlying nature of the exposure, or the presence of other constraints can necessitate the use of additional or more advanced methodologies. This workshop will cover advanced ratemaking topics applicable to different size and type of insured such as pricing for new products, competitor analysis, portfolio shifts, and large account pricing. This session will be structured as three modules. During the first module, we will provide an interactive case study challenging participants to use their creativity in setting the rates for a new product, and we will walk through an example of how to perform a competitive analysis (in the U.S. market). The second module will discuss the impact of portfolio shifts and underwriting enhancements on indications and how to leverage the extension of exposure method to more accurately assess rate needs. The third module will introduce the basic mechanics and common challenges of employing loss rating techniques to determine pricing for a risk based on the insured’s own experience. Armed with the basics, we will challenge ourselves to make practical decisions about account pricing from different perspectives (e.g. actuarial, underwriting, broker etc.).