Price Optimization News
Price Optimization Continues as an Unresolved Issue
Price optimization and the controversy over whether or not to use it in insurance continues even though many states have banned the practice, panelists said during the Casualty Actuarial Society's ...
Regulators Scrutinizing Premium Caps; Similarity to ‘Price Optimization’ Cited
Concerns over price optimization are leading regulators to think carefully about the implications of longstanding practices in insurance rating, including premium "caps" on policy renewals for ...
CFA’s Hunter Reacts in Actuarial Battle: Allstate’s Plan Is Price Optimization
Carrier Management recently published an article in three parts by James Lynch, chief actuary and vice president of Research and Information Services at the Insurance Information Institute, based ...
Not All ‘Optimization’ Is Price Optimization; Allstate’s CGR Proves It
"The purpose of price optimization is to extract as much profit as possible from policyholders, who are often required to purchase insurance policies," according to a February 2015 press release from ...
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 ...
The Growing Controversy Over Price Optimization in Insurance
The use of price optimization in insurance pricing is drawing increased attention and could be the next big industry battle. Or it could not be. Consumer groups and a growing contingent of states are ...
Reuters Column: Are Loyal Drivers Paying More to Insurers?
When Jonathan G. Stein became unhappy with his long-time car insurance carrier earlier this year, the 41-year-old lawyer from Elk Grove, California switched to a new company. How was he rewarded for ...