What are the key learnings for this year’s Pricing game at University of Malaga?
Addactis, along with the University of Malaga and the Spanish Institute of Actuaries have organised the 4th edition of Pricing Game on 17th February 2023 in Malaga for the actuarial students.
We thank you to all of those who joined and helps make it happen!
This event was very insightful for students who got an overview on the non-life pricing workflow and a better understanding of the current challenges in the insurance industry. In fact, Pricing game is a competition based on solving an actuarial problem by building a full and detailed pricing project to find the best solution.
So, now let’s see together the main highlights of the event and our winner’s feedback.
The pricing game is an opportunity to align theory with practice
The competition is the best way to align the theory and everything you have learned during your years of study with a real case study with a concrete example of an actuarial problem.
The main objectives of this event are, firstly, to give a global idea of the non-life pricing process and secondly to show the essential role of the actuary in risk analysis and its strong impact on decision-making. Plus, the actuarial students will be able to link modelling theory with the construction of technical premiums.
How does the Pricing Game work?
During a dedicated seminar focused on the use of actuarial tools within different contexts. The students must solve a motor insurance Pricing Game by providing technical price models.
Following a theoretical overview they must address a non-life pricing issue benefiting from our Pricing solution to support the actuarial process thinking and calculations.
What are the key learnings from this event?
- The pricing game highlights how each group can suggest different price segments and target even if they are all facing the same market and the same circumstances.
- The actuaries have an important role in decision-making because they must properly guide decision-makers and explain to them how to achieve profitability, retention, and risk model accuracy.
- The combination of actuarial methodologies, new technologies and effective decision-making processes will be essential to thrive in the new market conditions.
- Several elements must be considered to find the right solution to the actuarial problem in motor insurance such as the quality of the vehicle, its brand, the age of the driver, the region, the power as well as inflation and the increase in costs and the degree of risk and the probability of facing serious claims, etc.
Who are the winners this year?
Congratulations and well-done to this year’s winners Carmen Fernandez and Patricia Ramirez! We hope that you have deepened your knowledge through this game, and we wish you good luck in your actuarial career!
Let’s find out the testimonial of one of the winners:
“The fare variables that I have chosen were the power, driver’s age and vehicle brand.
The coefficient that I have chosen for the trend is 0.5% since I have observed the evolution of the last years, I have made the calculation and I have obtained said value. As an increase in inflation I have used 2.5%, calculating with previous years I have obtained 2% and I have added 0.5 more due to the increase in costs this year. Finally, I have put 20% as variability of serious claims, the average being 18% but in recent years this value has been around more and it is expected to continue like this.
Thank you for this enriching seminar!“
About addactis® Pricing Games
Addactis organises “Pricing Games”, a competition between students, academics, or practitioners who must solve a real-life actuarial problem using statistical modeling techniques to estimate pure premiums under different contexts.
Willing to see how Addactis organizes business pricing game? Check our latest article on KSA market pricing game.
Suggested Content
Don’t stop learning! Check below Addactis latest resources on Pricing:
Top 6 myths of non-life pricing insurance
Addactis experts have selected 6 Myths around pricing, which seem strangely persistent and widespread within all types of non-life insurance companies. Access now our E-book to find out those myths and how to overcome Pricing challenges in an insurance company.
Inflation: what pricing challenges for 2023?
The strong inflationary drift, together with the climatic drift, are thus pushing insurers to change their tariff structure. Read our article and find out all you need to know about Inflation, Pricing Challenges and Addactis experts’ expectations for 2023.
Addactis Pricing Game key learnings on The Actuary September Issue
The Actuary shares the key lessons from addactis last motor insurance Pricing Game, which is a competition in which actuarial professionals work together to solve a problem that reflects actual market conditions.