DIAGNOSE
Find what is driving underperformance
Move from a weak portfolio result to a clear understanding of the segments and loss drivers that need attention.
The measures, explained
- CCR
- Claims and Commission Ratio: claims and commission as a percentage of earned premium, excluding overhead expenses.
- IBNR
- Incurred But Not Reported: reserves for claims costs yet to emerge in full.
- Attritional claims
- More frequent, lower-value claims, distinct from separately classified large and weather losses.
Pinpoint the problem
Start with a product or segment that has underperformed over the last 12 months. Use comparison box charts and target-based tiering to identify the sub-segments driving the shortfall.
Separate the drivers
Start with CCR, then examine attritional, large and weather losses to establish what is driving the result. Distinguish a persistent pricing issue from changes in loss experience or risk mix.
Choose a response that fits
Consider rate action where attritional performance indicates a pricing issue. For large or weather losses, assess risk selection, underwriting appetite, policy wording and terms.
A focused diagnosis. A more targeted underwriting response
Let’s put it into practice
See how this could work for your portfolio
A portfolio challenge, an upcoming review or a different way of working. Let’s explore it together.
Book a demo