Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Property - Casualty / General Insurance
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 07-01-2018, 10:59 PM
ronaldy27's Avatar
ronaldy27 ronaldy27 is offline
Member
CAS
 
Join Date: Jan 2012
Location: The South
Studying for the credential
Posts: 3,046
Default Commercial pricing

I'm interested in knowing more about day to day work in commercial pricing. I did some research and I learned that while in personal lines pricing, data are more credible and so modeling work feels more "clean."
While commercial pricing work, there tends to be more expert judgement calls.

Anyone here experienced in commericial pricing shed some light by sharing what you do day to day (as an analyst or manager), and what makes your work more exciting/challenging?

I'm looking into maybe moving into commercial pricing...

Thanks in advance.
__________________
Spoiler - for size:



Reply With Quote
  #2  
Old 07-01-2018, 11:39 PM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

The ability to segment a portfolio is easier because you can target specific types of rate action on certain accounts. In personal lines you have to target rating variables and hope your changes will result in the desired segmentation.
__________________
ACAS 7 8 9
Reply With Quote
  #3  
Old 07-01-2018, 11:41 PM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

While there is less data, in some sense you can directly impact a portfolio with a coherent strategy. A lot of it is more art than science due to the limited data.
__________________
ACAS 7 8 9
Reply With Quote
  #4  
Old 07-02-2018, 12:00 AM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

Excess pricing, large account pricing, and loss rating don't really exist in personal lines. Personal lines umbrella pricing is different than excess pricing.

Also the ability to take positions that involve collateral is pretty different.
__________________
ACAS 7 8 9

Last edited by act_123; 07-02-2018 at 12:09 AM..
Reply With Quote
  #5  
Old 07-02-2018, 12:02 AM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

Lines of business are more varied. General liability for example could have a multitude of different products with different rating bases. Workers compensation is very involved with laws and benefit levels, and differs drastically by state.

New products like cyber come up. Trying to create support for a new product can be very challenging but also rewarding.
__________________
ACAS 7 8 9

Last edited by act_123; 07-02-2018 at 12:09 AM..
Reply With Quote
  #6  
Old 07-02-2018, 12:06 AM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

At the same time, rate monitoring is boring. Because commercial lines have other factors that affect the rate like experience mod and schedule mod, a commercial insurer needs to monitor the rate often (often monthly). In personal lines the rate is often fully tied into filed and approved rate change. Monitoring is not needed as much.
__________________
ACAS 7 8 9
Reply With Quote
  #7  
Old 07-02-2018, 12:07 AM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

Admitted vs non admitted distinctions also exist. Non admitted pricing practices my differ vastly from admitted insurance.
__________________
ACAS 7 8 9
Reply With Quote
  #8  
Old 07-02-2018, 12:12 AM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

My day to day in personal lines a few years ago was semi annual indications, filing support, responding to objections, SAS coding, working with predictive modeling team for an mva update (mostly just background information), and random rating variables segmentation and territorial projects.
__________________
ACAS 7 8 9
Reply With Quote
  #9  
Old 07-02-2018, 12:17 AM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

Day to day now is pretty random in commercial lines. Depends on what is needed. I do product portfolio analyses similar to indications. Some large account pricing. Developing benchmark reports and more advanced price monitoring reports.

Work with UWs to come up with portfolio strategies. I still do a lot of filings. The filings require a lot of creativity because data is limited.

Many times I am pulled into random projects: analzying new products and submissions that we might want to consider, help devise a profit sharing structure, etc.
__________________
ACAS 7 8 9
Reply With Quote
  #10  
Old 07-02-2018, 12:19 AM
act_123 act_123 is offline
Member
CAS
 
Join Date: Dec 2013
Posts: 3,267
Default

Hope my random thoughts based on my limited experience are helpful.
__________________
ACAS 7 8 9
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 07:03 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.38883 seconds with 9 queries