Managing Overconfidence in Pricing

Topics:
Insurance
Tags:
Actuary,
Towers Perrin,
Pricing Strategy,
Pricing,
Marketing Research,
Marketing,
Insurance Company,
Insurance,
Corporate Insurance,
Business Operations,
...
Source:
Towers Perrin

FREE Registration is required

Overview: Insurers can overcome mispricing by taking practical steps to implement a "Control Cycle." The cycle improves decision making by enabling actuaries and underwriters to learn from the past. If insurers did a better job of managing "overconfidence" among their actuaries and underwriters when they make pricing and underwriting decisions, those insurers would achieve better results and even mitigate the adverse effects of the underwriting cycle. After a brief review of the key concepts of overconfidence, this article provides insurers with some practical ways to improve the quality of pricing decisions by addressing the problem of overconfidence among actuaries and underwriters.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 113KB | Date: Feb 2004 | Pages: 4

People who downloaded this item also downloaded

White Paper Business Strategy : Marketing Segmentation
White Paper Get Your Performance Appraisal Discussions Off To A Good Start
White Paper The Development Of Complex Adaptive Systems Based Decision Support Systems
White Paper Effective Strategies For Internal Outsourcing And Offshoring Of Business Services
White Paper Emotional Intelligence Competencies In Physician Leaders: An Exploratory Study

Top results from Insurance

White Paper How Should Unemployment Benefits Respond to the Business Cycle?
White Paper Consolidation and Efficiency in the Financial Sector: A Review of the International Evidence
White Paper Market Discipline in Banking Reconsidered: The Roles of Deposit Insurance Reform, Funding Manager Decisions and Bond Market Liquidity
White Paper Deposit Insurance, Bank Incentives, and the Design of Regulatory Policy
White Paper Getting a Handle on Disability Claims

» View all Insurance listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).