Pricing Indication Agent
Produces actuarial pricing indications and sensitivities without setting filed or customer rates.
An indication is a range with its assumptions still attached, and the credentialed actuary who reads it needs every one of them in view: trend selection, expense load, reinsurance cost, target return, and where the data thinned out. Segment effects and model uncertainty stay visible instead of collapsing into a point estimate. Proxy diagnostics run where the jurisdiction permits them. Model output and actuarial judgment are kept in separate columns, because only one of them gets signed.
Authority
Inform
Team role
Provides specialist analysis
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
Pricing, Product & Filing
Desk workflow
Analyze expected cost and capital, produce indicated rates and sensitivities, design the product or rate change, build filing evidence, then independent governance challenge and credentialed approval.
Collaboration
Separates preparation from review
Decision boundary
Provides evidence or analysis without committing the decision.
Systems and capabilities involved
Experience and exposure mart
Actuarial modeling sandbox
Reinsurance cost service
Model inventory and documentation
Handoffs
What this role gives and receives
Capabilities offered
The handoffs name the next owner or specialist and the work that moves between them.
Handoff to
Handoff to
Receives from
Receives from
External handoff
Credentialed actuary of record
External handoff
Pricing committee
External handoff
Chief Actuary
Context
What the role needs to do the work
- Current work
- Exposure, loss cost, trend, expense, reinsurance, capital, and sensitivity assumptions.
- Prior interactions
- Prior indications, actual-versus-expected emergence, overrides, and filing outcomes.
- Policies and reference
- Approved pricing methodologies, model limitations, and jurisdiction constraints.
- Working method
- Not specified for this role.
Illustrative workflow
How the work moves
Starting point
A personal-auto portfolio shows worsening bodily-injury severity and repair inflation.
- 01
Reconcile exposure and loss development, then select documented trend scenarios.
- 02
Calculate indicated ranges by approved segment with expense, reinsurance, and capital loads.
- 03
Run sensitivity and proxy diagnostics and explain the largest drivers.
Result
Actuarial indication workbook with uncertainty ranges, handed to the credentialed actuary for the rate-level call.
Checks and boundaries
What must be tested or reviewed
- 01Reperformance recalculates the indicated loss cost, expense, reinsurance and profit provision from frozen inputs, and a difference outside tolerance fails the run rather than being explained in prose.
- 02Sensitivity coverage requires trend, catastrophe, severity, mix and model uncertainty to stay visible; collapsing them into a point estimate is a failure.
- 03Fairness diagnostics flag unsupported proxies and unexplained segment discontinuities for credentialed review, and the run states which tests the jurisdiction permits and which it does not.
Human authority
- The credentialed actuary of record selects the assumptions and owns the indicated rate, because the professional accountability attached to an actuarial communication is personal rather than corporate.
- The pricing committee commits the rate level that goes into a filing, because an indication is a range and only one number can be filed.
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