Need to know about Insurance Pricing?
Updated: Nov 19, 2019
There has been a proliferation of companies starting to cover “insurance” losses. These new entrants include—but are not limited to--automotive OEMs who are now providing insurance, insuretech start-ups and mobility companies sell-insuring losses. Unlike typical consumer products (e.g., a can of beans), the majority of “insurance” costs are unknown when the product/service is sold. In some cases, the costs may not actually be fully known for years.
Actuaries have been dealing with this uncertainty for years and have developed techniques to estimate all future costs.
If you would like to learn more about these techniques, you can find them outlined in the text that I co-authored with Claudine Modlin. While the textbook is used by the Casualty Actuarial Society to teach ratemaking to aspiring P&C actuaries, the format allows the material to be understood by a broader audience. It is FREE and available here: https://www.casact.org/library/studynotes/Werner_Modlin_Ratemaking.pdf