General Insurance Pricing Principles (SP8) Exam
Learn how general insurance and reinsurance are priced, from rating bases to credibility and catastrophe models.
Learning Objectives
4 objectivesDescribe general insurance products, reinsurance and the business environment.
Explain the risks in pricing, the use of data, and the collective risk model.
Set rates using appropriate bases and methodology, including generalised linear models and machine learning.
Apply credibility theory and price reinsurance, and describe catastrophe models.
Programme Outline
4 topicsGeneral Insurance Products and General Business Environment
Products, reinsurance and the effect of the business environment.
Data, Risks and Risk Management
Risk and uncertainty in pricing, data, experience investigations, and the collective risk model.
Rating Bases and Methodology
The components of a premium, rating methodology, rating bases, pricing approaches, and multivariate modelling and machine learning.
Credibility, Reinsurance and Catastrophe Modelling
Credibility theory, pricing direct and reinsurance business, and the structure of catastrophe models.
Hands-On Resources
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