One model misses the full rate set
A model can perform well on its own while the combined rates change premium, loss ratio and risk mix across the book.
Portfolio simulation
Put rating structures head to head on the same risks, and see how your pricing strategy shapes your premium, business mix, margin, and adverse selection.
Simulation challenges
A model can perform well on its own while the combined rates change premium, loss ratio and risk mix across the book.
Excel’s size limits and custom Python pipelines can turn each comparison into extracts, joins and reruns.
Without segment views and what-if tests, it is hard to see where a change helps, where it hurts and what needs review before deployment.
Full portfolio testing
See how proposed rates compare with current rates across your full book before anything goes live. Bring in any model, from GLMs and rating tables to GAMs and GBMs, and combine them for a better view of risk.
Compare current and proposed premium, loss ratio and auction outcomes on the same set of risks.
| Metric | Actual | Current | Proposed | Relative change | Absolute change |
|---|---|---|---|---|---|
| Portfolio result | |||||
| Average | £304.24 | £613.96 | £591.26 | −3.70% | −£22.70 |
| Total | £367,905,192.68 | £742,436,896.57 | £714,986,582.75 | −3.70% | −£27,450,313.82 |
| Loss ratio | — | 49.554% | 51.456% | +3.84% | +1.90 pts |
| Gini | 0.99449 | 0.19012 | 0.22344 | +17.53% | +0.03 |
| Competitive auction | |||||
| Auction average | — | £575.69 | £507.63 | −11.82% | −£68.07 |
| Auction total assigned | — | £281,398,294.66 | £365,627,977.41 | +29.93% | +£84,229,682.75 |
| Auction loss ratio | — | 64.42% | 51.05% | −20.73% | −13.37 pts |
| Auction profit | — | £100,181,957.32 | £178,963,433.55 | +78.64% | +£78,781,476.24 |
| Auction exposure share | — | 40.42% | 59.56% | +47.35% | +19.14 pts |
Illustrative monetary value
Plot exposure by the proposed-to-current premium ratio to see how much of the book moves, where the tails sit, and which risks need review before release.
| Proposed-to-current premium ratio | Exposure | Approximate price change |
|---|---|---|
| (0.58, 0.62] | 460 | −40% |
| (0.70, 0.74] | 2,144 | −28% |
| (0.82, 0.86] | 7,234 | −16% |
| (0.90, 0.94] | 10,026 | −8% |
| (0.94, 0.98] | 10,065 | −4% |
| (0.98, 1.02] | 9,124 | No change |
| (1.10, 1.14] | 4,160 | +12% |
| (1.22, 1.26] | 1,535 | +24% |
| (1.38, 1.42] | 475 | +40% |
| (1.54, 1.58] | 105 | +56% |
Most exposure sits between an 8% reduction and no change. The thinner tails identify customers with the largest decreases or increases for targeted review.
Order risks by the proposed-to-current prediction ratio, then compare both estimates with the actual outcome in each equal-exposure bin. The same view can compare candidate models or complete rating structures.
| Portfolio bin | Average actual | Average proposed | Average current |
|---|---|---|---|
| 1 | 394 | 366 | 612 |
| 2 | 380 | 328 | 470 |
| 3 | 316 | 302 | 410 |
| 4 | 271 | 293 | 378 |
| 5 | 297 | 294 | 366 |
| 6 | 288 | 296 | 357 |
| 7 | 346 | 301 | 349 |
| 8 | 318 | 308 | 340 |
| 9 | 326 | 310 | 321 |
| 10 | 379 | 323 | 294 |
Proposed is closer to actual in 8 of 10 bins. The separation is strongest among the risks where the two structures disagree most.
Compare observed and predicted claim frequency with the fitted coefficient. Exposure is reflected directly beneath the curve.
Actual, predicted, and fitted driver-age coefficients with exposure.
| Driver age | Actual | Predicted | Coefficient | Exposure share |
|---|---|---|---|---|
| 17 | 0.306 | 0.300 | 0.52 | 0.717% |
| 25 | 0.261 | 0.256 | 0.30 | 1.376% |
| 35 | 0.217 | 0.227 | 0.31 | 2.117% |
| 45 | 0.258 | 0.261 | 0.48 | 1.908% |
| 55 | 0.233 | 0.220 | 0.17 | 1.257% |
| 65 | 0.144 | 0.145 | −0.24 | 1.323% |
| 75 | 0.055 | 0.069 | −0.72 | 0.907% |
| 85 | 0.120 | 0.115 | −0.12 | 0.580% |
| 95 | 0.345 | 0.278 | 0.94 | 0.298% |
| 99 | 0.475 | 0.390 | 1.62 | 0.232% |
Rotate the two-way view to inspect every combination. Bar height shows the exposure supporting each cell; colour shows the proposed rate change.
The illustrative view contains twenty combinations of driver-age and annual-mileage bands. Exposure is highest for drivers aged 35 to 49 travelling 5,000 to 10,000 miles. Proposed rate changes range from a 4.8% reduction to an 8.0% increase.
Three-dimensional driver age and annual mileage portfolio view.
| Driver age | Annual mileage | Exposure | Proposed rate change |
|---|---|---|---|
| 17–24 | 0–5k | 310 | −4.8% |
| 25–34 | 0–5k | 640 | −3.2% |
| 35–49 | 0–5k | 780 | −0.8% |
| 50–64 | 0–5k | 520 | +2.6% |
| 65+ | 0–5k | 260 | +5.4% |
| 17–24 | 5–10k | 420 | −3.1% |
| 25–34 | 5–10k | 920 | −1.4% |
| 35–49 | 5–10k | 1,120 | +0.7% |
| 50–64 | 5–10k | 810 | +3.8% |
| 65+ | 5–10k | 390 | +6.1% |
| 17–24 | 10–15k | 270 | −0.9% |
| 25–34 | 10–15k | 710 | +0.5% |
| 35–49 | 10–15k | 940 | +2.7% |
| 50–64 | 10–15k | 690 | +5.2% |
| 65+ | 10–15k | 310 | +7.4% |
| 17–24 | 15k+ | 140 | +1.8% |
| 25–34 | 15k+ | 350 | +3.1% |
| 35–49 | 15k+ | 460 | +4.9% |
| 50–64 | 15k+ | 320 | +6.8% |
| 65+ | 15k+ | 170 | +8.0% |
Compare the proposed and current structures across the portfolio. Colour shows rate movement and height shows the exposure supporting each area.
Loading geographic portfolio data…
Portfolio explorer
Start with dislocation analysis to see the size and spread of price changes. Then use double lift to compare structures against observed outcomes, one way and two way views to inspect patterns, and geography to see where changes fall. Filter by segment, peril, model or rating structure.
Open portfolio viewsWhat-if analysis
Use a custom expressions to test a change in cost for a specific group of risks. If electric vehicle repairs become 10% more expensive, apply that assumption only to electric vehicles, then compare expected claims, loss ratio and margin with the base case. Test any proposed rate adjustment against the same portfolio.
Cross-package importance
Understand what variables drive the estimates for each underlying model in your rates.
| Rank | Variable | MTPL_Freq | MTPL_Sev |
|---|---|---|---|
| 1 | bm | 0.2118 | 0.0216 |
| 2 | coverage | 0.0249 | 0.0705 |
| 3 | ageph | 0.0915 | 0.0373 |
| 4 | postcode | — | 0.0423 |
| 5 | fuel | 0.0649 | — |
| 6 | power | 0.0637 | — |
| 7 | agec | 0.0413 | 0.0198 |
| 8 | fleet | 0.0078 | — |
Competitive rate auction
Price the same portfolio with two rate sets. For each eligible risk, we assign the business to the lower price and carry the selected loss measure into the winning portfolio.
Find segments where a lower price attracts a worse expected business mix, then adjust the rating structure and run the auction again.
A lowest price auction isolates selection risk. It does not replace a demand model that accounts for customer behaviour, brand, channel, and product differences. But it can be used with competitor rates to see where you are losing business.
Saved and shareable views
Share a link to the exact simulation view rather than rebuilding the analysis in slides. Authorised users open the same rating versions, portfolio filters, and selected measures. Access and data permissions apply to the shared view. Making it easy to review before setting it live.
When the selected strategy moves forward, the simulation evidence moves with it.