To support underwriters in their day-to-day jobs EMB carries out rating reviews of individual accounts. Work on individual accounts tends to be experience rating, where the account is rated on its own claims experience. However, benchmarks will often be used where data is limited.
This typically works in one of two ways:
• EMB takes the data, calculates an initial premium and then works through to a recommended premium with the underwriter.
• EMB reviews the technical calculations of the underwriter providing an independent pair of eyes to check on the technical work carried out and the appropriateness of assumptions. In this way EMB helps to transfer their technical pricing knowledge across to the underwriter.
A common way of working on difficult risks is where we try to marry our technical expertise with the expertise of the underwriter. This would involve an EMB consultant working along with the underwriter to convert the underwriter’s knowledge into assumptions and models that the underwriter thinks appropriately reflects the risk and allows a more technical, more consistent approach to the pricing of a risk.
Another option available to the clients of EMB for Individual Account rating is to use PrisEMB; EMB’s unique pricing toolkit for the pricing of Individual Accounts (see PrisEMB section for more details). PrisEMB users then have the option of using EMB to peer review their work, enabling the user to access EMB’s pricing expertise.
A key feature of EMB’s individual account rating support is our experience in working within the time limits imposed by the nature of the work. We understand that the underwriter is under pressure from broker and client to deliver quotes promptly and we work closely with underwriters to ensure they can deliver to their clients in a timely manner.
Another key feature of EMB’s individual account rating support is knowledge transfer, whereby we aim to transfer our technical pricing expertise to the underwriter, allowing the underwriter to combine their knowledge of an account with the technical skills needed to derive a technical rate.
