Underwriting and pricing
There is an increasing focus on pricing and product value to ensure general insurance markets are effective, fair, and transparent to customers.
We have specialists in Underwriting and Pricing who can identify a business’ needs and provide advice in light of the changing regulatory landscape.
Current market challenges
The FCA’s market study found that pricing practices are disadvantaging customers, particularly those who do not shop around for new deals. Poor product value was harming customers due to ineffective competition and a lack of common value measures.
The FCA will implement pricing and automatic renewal remedies in January 2022. These measures will help ensure that firms deliver fair value in home and motor insurance products.
The FCA had proposed reporting requirements for monitoring home and motor insurance markets to ensure compliance with the pricing remedy and identify any customer harm. The FCA will use firms’ reporting data to measure success, track market changes, and identify firms that continue to engage in price walking.
How we can help
Our team has performed a variety of Pricing services focusing on clients’ scope and requirements to produce quality work and add value to the business and has a number of actuaries with experience in pricing and underwriting matters, staff with underwriting insight and project management skills. This means we bring an appropriate level of expertise and real credibility when speaking to senior management and your operational teams.
Our financial services insurance portfolio and our team’s past experience allow us to add significant value from a current and future market perspective. We can provide best practice insights which you may wish to consider. Whilst we offer best practice solutions, we ensure that our recommendations are appropriate to the nature, size, and complexity of your business.
Case study |
We helped transform a leading international general insurer’s approach to Underwriting & Pricing for their Commercial Property business. We proposed a single rating approach that takes a rationalised view of the existing rating processes. Our approach focussed on the key perils that influenced the Commercial products offering, as well as the customer’s decision to purchase the policy from the insurer. This involved analysing the insurer’s Commercial Property raters and having in-depth discussions with the insurer’s Commercial Pricing and Underwriting teams to determine the key questions that are used to calculate the current premium for each peril. Based on our analysis and discussions that we had with the insurer, we proposed a rating process for each peril across the whole of the Property portfolio and how the proposed rating process would determine the price of the policy. |
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