2 p.m. - 3 p.m. Location: FO 2.404
Data Scientist Consultant, Kemper Insurance
P & C Insurance Pricing Basics and Modeling Techniques
The insurance industry has been built on and around statistical techniques. Original analyses were very simple, but as time and technology has progressed, so has the sophistication in which insurers’ price. The industry was one of the earliest adopters of predictive modeling due to the unique nature of the business. It is one of the few models where a price is provided for a service in advance with the ultimate cost of that service unknown.
It is imperative that insurers’ price risks correctly. Failure to do so can lead to poor profit, declining market share and possibly insolvency.
This presentation will cover a number of considerations related to pricing insurance. A brief history of techniques will be discussed. Common modeling techniques widely used today will be presented and an overview of general pricing structures will be given. Lastly, we will focus on exterior concerns related to pricing such as regulatory and implementation restraints.
Sponsored by the Department of Mathematical Sciences