Are you pricing household insurance

like a can of beans?

James Rakow

Deloitte

20th May 2014

Colour palette for PowerPoint presentations

Dark blue

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R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

2

What does it say on the tin?

Are you pricing household insurance like a can of beans?

20th May 2014

Number of Claims Cost of Claims

FIRE THEFT WEATHER EoW SUBSIDENCE AD OTHER Source: ABI

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

3

What does it say on the tin?

Are you pricing household insurance like a can of beans?

“3 for 2” “15 months Cover for 12

months”

“Buildings Cover plus

free contents”

“Save 20% - was 45p now

36p”

“40% no claim

discount”

“Home Emergency

Included as standard”

20th May 2014

“Buy one get one free”

“Mix & Match add 3 for 2

cheapest Item free”

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

4 20th May 2014

What does it say on the tin?

Are you pricing household insurance like a can of beans?

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

5

1957 – Was it so different?

Are you pricing household insurance like a can of beans?

The “Toddlers’ Truce” is abolished.

Norwich City Council becomes the first British

local authority to install a computer.

Manchester United retain Football League First

Division title

20th May 2014

1957 2014

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

6

1957 – Was it so different?

Are you pricing household insurance like a can of beans?

Actor and Playwright Noel Coward moves from

the West Indies amid criticism that he is living

abroad for tax reasons

Aston Villa 2 – Manchester United 1

The Tryweryn Bill, permitting Liverpool City

Council to build a reservoir which will drown the

village of Capel Ceyln becomes law

20th May 2014

1957 2014

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

7

1957 – Was it so different?

Are you pricing household insurance like a can of beans?

East Midlands earthquake

The graphite core of the nuclear reactor at Windscale, Cumbria catches fire, releasing substantial

amounts of radioactive contamination

A report by the Medical Research Council reveals that there is evidence to support a link between

tobacco smoking and lung cancer

Lewisham rail crash kills ninety and injures 173

20th May 2014

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

8

1957 – Was it so different?

Are you pricing household insurance like a can of beans?

20th May 2014

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

9 20th May 2014

What does it say on the tin?

Are you pricing household insurance like a can of beans?

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

10 20th May 2014

1957 - Everything 2/3d

Are you pricing household insurance like a can of beans?

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

11

1957 - Everything 5/-

Are you pricing household insurance like a can of beans?

20th May 2014

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

12

1957 – What does did it say on the tin?

Are you pricing household insurance like a can of beans?

20th May 2014

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

13

Are you pricing household insurance like a can of beans?

20th May 2014

1957 – What does did it say on the tin?

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

14

What was the price on the tin?

Are you pricing household insurance like a can of beans?

20th May 2014

Source: http://www.heinz.co.uk/Our-Company/About-Heinz/Heinz-Story

Source: http://shelf3d.com/Search/TV

1931 1961 1972 2005

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

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R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72 Personal Lines Pricing Techniques − Generalised Linear Models

− Classification Techniques

− Other Relativity Methods

− Technical Base Rates

− Products with Additional Characteristics

− Rate Implementation

− Lifetime Customer Value Models

− Expense Modelling

20th May 2014

Current analytical techniques – fit for purpose?

Are you pricing household insurance like a can of beans?

Source: General Insurance Premium Rating Issues Working Party (GRIP) – 12 January 2007

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72 London Market Pricing Techniques

− Experience Rating

− Exposure Rating

− CAT Models

− Stochastic Methods

− Models for Underwriters

− Rate Monitoring

20th May 2014

Current analytical techniques – fit for purpose?

Are you pricing household insurance like a can of beans?

Source: General Insurance Premium Rating Issues Working Party (GRIP) – 12 January 2007

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

20th May 2014

Can better use of pricing and underwriting help manage flood risk for insurers?

Are you pricing household insurance like a can of beans?

?

Personal Lines Pricing

Techniques − Generalised Linear Models

− Classification Techniques

− Other Relativity Methods

− Technical Base Rates

− Products with Additional

Characteristics

− Rate Implementation

− Lifetime Customer Value Models

− Expense Modelling

London Market Pricing

Techniques − Experience Rating

− Exposure Rating

− CAT Models

− Stochastic Methods

− Models for Underwriters

− Rate Monitoring

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

20th May 2014

Can better use of pricing and underwriting help manage flood risk for insurers?

Are you pricing household insurance like a can of beans?

?

Personal Lines Pricing

Techniques − Generalised Linear Models

− Classification Techniques

− Other Relativity Methods

− Technical Base Rates

− Products with Additional

Characteristics

− Rate Implementation

− Lifetime Customer Value Models

− Expense Modelling

London Market Pricing

Techniques − Experience Rating

− Exposure Rating

− CAT Models

− Stochastic Methods

− Models for Underwriters

− Rate Monitoring

‘Best of Both’

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

19

Is this where we will be buying our “beans”?

Are you pricing household insurance like a can of beans?

20th May 2014

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

20th May 2014

Is this what it will say on the tin?

Are you pricing household insurance like a can of beans?

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

20th May 2014

Is this what it will say on the tin? – Everything £1

Are you pricing household insurance like a can of beans?

Colour palette for PowerPoint presentations

Dark blue

R17 G52 B88

Gold

R217 G171 B22

Mid blue

R64 G150 B184

Secondary colour palette

Primary colour palette

Light grey

R220 G221 B217

Pea green

R121 G163 B42

Forest green

R0 G132 B82

Bottle green

R17 G179 B162

Cyan

R0 G156 B200

Light blue

R124 G179 B225

Violet

R128 G118 B207

Purple

R143 G70 B147

Fuscia

R233 G69 B140

Red

R200 G30 B69

Orange

R238 G116 29

Dark grey

R63 G69 B72

22 20th May 2014