Underwriting and Pricing solutions

PwC provides support in key operational areas to insurers undergoing changes in structure, seeking to improve performance, looking to reduce costs, developing new areas of business, integrating and updating information and data systems, or focusing on mitigating risks within the business.

In relation to underwriting and pricing, we work with you to assess and enhance your operating model, policies, processes, tools/platforms, controls and governance, in order to ensure the most efficient and effective use of your capital resources.

Potential issues

  • Sub-optimal underwriting and pricing procedures and controls are contributing to inferior underwriting results.
  • Your competitors are selecting the more profitable risks in the market through superior risk assessment capability, including the use of predictive modeling and predictive analytics.
  • You are having difficulty with pricing decisions because of a lack of understanding of the price/volume relationship in different market segments.
  • You need to evaluate the quality of the underwriting operations and controls of a target insurer in the context of mergers and acquisitions due diligence.

How we can help

  • Identification of strengths and weaknesses in your underwriting and pricing processes and controls.
  • Enhancing your ability to prepare more effectively for a cycle downturn or upturn.
  • Achieving a better understanding of your underwriting performance drivers.
  • Improving your competitive advantage through a deeper understanding of risk relativities and price sensitivity by segment.
  • Improved operational due diligence and transaction negotiating capabilities.

Our services

  • Benchmarking of your underwriting model, distribution strategy, processes, controls, tools/platforms and competencies against our Gold Standard maturity framework. This will identify material gaps to industry best practices and opportunities for improving your underwriting performance.
  • Assessment of your technical pricing models and price monitoring framework.
  • Provision of assurance on the accuracy and robustness of catastrophe aggregation monitoring and management, including suitability of aggregation management information.
  • Implementation of controls to avoid leakages in capturing catastrophe exposures and provision of assurance on key modeling assumptions in catastrophe risk management.
  • Development of appropriate realistic disaster scenarios.
  • Predictive modeling of expected claims cost and price elasticity; we use data mining and statistical modeling tools, together with third party data, to support effective pricing models and business processes.