Pricing & Ratemaking
Actuarial pricing support that helps insurers set the right rates, compete effectively, and protect profitability
From reviewing existing rates to developing new pricing structures and supporting regulatory filings, we help insurance leaders turn data and actuarial analysis into better pricing decisions.
Pricing & Ratemaking
What we offer
Effective pricing requires more than an actuarially sound rate indication. Insurers need to understand changing loss experience, competitive positioning, customer behavior, and regulatory requirements while ensuring that pricing supports their broader growth and profitability objectives.
Davies provides actuarial pricing and ratemaking support to insurers, including mutual insurance companies, MGAs, captives, and other risk-bearing organizations. We help clients assess rate adequacy, develop and refine rating structures, evaluate new variables and methodologies, and support the actuarial components of regulatory rate filings.
Our consultants combine pricing expertise with experience working both with insurers and on behalf of insurance regulators. This gives us insight into how pricing strategies work commercially and how increasingly sophisticated rating methodologies are likely to be assessed from a regulatory perspective.
Our services
Our pricing and ratemaking services include:
- Rate adequacy and rate level analyses
- Rate structure development and review
- Pricing for new products and programs
- Development and evaluation of rating variables
- Competitive pricing analysis
- Predictive modeling and multivariate analysis
- Catastrophe model-supported pricing
- Rate filing actuarial support
- Regulatory filing and objection support
- Pricing and underwriting analysis for large or complex risks
Our experience
Our consultants have supported pricing and rate filing assignments for mutual and other insurance companies across a broad range of property & casualty lines. Our work includes traditional rate structure analysis, development of new rating methodologies, competitive analysis, and the use of catastrophe models, simulation techniques, and multivariate approaches to support pricing decisions.
Importantly, we understand that technically appropriate pricing still needs to work in the market. We help clients balance actuarial indications with competitive considerations and wider business objectives, giving management a clearer basis for decisions about rate levels, product positioning, and growth.
Our regulatory work adds another perspective. Our consultants have reviewed insurance company rate submissions on behalf of regulators, helped clients resolve filing issues, and supported rate hearings and other regulatory proceedings. This experience helps us anticipate potential challenges and develop pricing approaches that are both commercially effective and capable of withstanding regulatory scrutiny.
