Our routine procedure for the estimation of gross premium rates consists of:

• Estimating all pricing relativities;
• Estimating, for a specific portfolio mix, the total premium pool over the underwriting period to which prices are expected to apply;
• Calculating a base premium which, when combined with the portfolio mix and estimated relativities, generates the calculated premium pool.

The end result of this process are the gross premium rates on a technical basis.

With this analysis complete, you may then wish to use portfolio optimisation to add value to your business.

For more detailed information contact Richard Brookes or Alan Greenfield.