Rajesh Narayan, VP of Product & Underwriting at ValueMomentum

If I were to look at pricing modernization and recast it as actuarial modernization, I would say there are broadly five different outcomes they’re looking for.

One is trying to get data and model the risk exposure more accurately. So, instead of using proxies, looking at actual data which correlates to the true risk.

The second is the speed to market, which is about how do I take pricing, do the filing, move it into a market as soon as possible I have a very clear idea of how I want to price.

The third is the ability to understand the profitability and the simulation and the book of business impact retention, which is needed in modeling.

The fourth is taking the CAT exposed elements into that factor. That is, if I think about my book of business and I know what CAT events could impact that book of business, am I reflecting that into my pricing?

And the fifth is primarily the ability to segment your risks so that you can look at risk concentration in different ways.