The Biggest Problem With Your Pricing Model is Your Reserving Model
MuSigma Webinar Series, August 4 2020
Speaker: Chris Gross, Gross Consulting
The actuarial profession has made great strides in the use of predictive modeling techniques to improve their price estimates, but whether actuaries use are using traditional ratemaking or more sophisticated techniques, they are also usually incorporating a flawed assumption – that all policies’ claims will develop identically. The use of this assumption creates significant distortion in pricing indications, both with regard to specific pricing variables and with regard to the overall indication
In this webinar, Chris will discuss this problem in more detail, illustrating the extent of the distortions that it causes, and offer some potential solutions to the problem that actuaries can incorporate into their pricing analyses.
Presented by Gross Consulting, the MuSigma Webinar Series is an excellent opportunity for actuaries and insurance professionals to engage in free, interactive, and relevant content designed to provide quality continuing education.