Simulates expected claims frequency and severity from historical loss data, then builds up a risk-adjusted premium the way a pricing actuary would document it.
Adjust claims frequency, severity and risk factors and the agent recalculates the quoted premium instantly.
| Metric | Value |
|---|
| 1. Simulate loss vectors | Models expected claims frequency and severity for the risk class from historical loss data. |
| 2. Apply individual risk factors | Adjusts the pure risk cost for the applicant's specific risk factors — location, age, claims history. |
| 3. Load for expenses and margin | Adds the insurer's expense ratio and target margin, then applies any eligible discounts. |
| 4. Hand off | Issues the quoted premium to underwriting, and feeds the realized loss ratio back into the next pricing cycle. |