price elasticity News
An Accident of the Rating Process: Allstate’s Cure Explained
In Part 1 of this article series, I described cost-based pricing used by actuaries, which includes business judgment—introducing differences between the technical price indication for a book of ...
About Those Rates: Why Allstate’s Rating Program May Not Be What It Seems
Actuaries occupy a quiet, arcane world, their debates obscure: Loss development factors: weighted vs. straight? Premium impact: parallelogram vs. extension of exposures? Reserve methods: chain ladder ...
Insurance Price Optimization: Lawyer’s Perspective
A major controversy is growing in the world of insurance regulation over price optimization. Regulators are becoming increasingly aggressive on the issue. Maryland, California, Ohio and New York have ...
Florida Bans Price Optimization; Insurers Question Definition
A memorandum released last week by Florida Insurance Commissioner Kevin McCarty warning insurers in the state not to use price optimization in rating has gotten cheers from a consumer advocate group ...
Price Optimization or Price Discrimination? Regulators Weigh In
Insurers' growing use of predictive data analytics is predicated on enhancing operational efficiency, improving decision-making and offering more detailed pricing of products. It's that last practice ...
Full Power of Data-Driven Analytics Still Largely Untapped by Insurers
The depth and breadth of predictive modeling applications are growing as insurance companies become more comfortable with this core function in modern property/casualty business. However, few ...
California Commissioner Tells Insurers to Cease Price Optimization
California Insurance Commissioner Dave Jones on Wednesday issued a notice to property/casualty insurers doing business in California advising them that so-called "price optimization" in rate making ...
Price Optimization: A Dangerous Method?
Last year, right around Halloween, I started noticing some odd goings on at the professional association for actuaries, the Casualty Actuarial Society (CAS). As a Fellow in the CAS, I was receiving ...