Products and rating

A product is something you sell: private motor, family health, home, travel. You describe it once, with its coverages and prices, and every quote is then worked out the same way. Products are under Policies > Products.

Create a product

1. Choose New product and enter a name, a code and the line of business: motor, health, life, property, marine, travel or other.
2. Set the standard period, usually 12 months.
3. Fill in Pricing:
   • Base premium is either a rate, as a percentage of the sum insured, or a flat amount.
   • Minimum premium: the premium never goes below this.
   • Tax rate and policy fee: leave empty to use the ones in Company settings.
   • Highest discount allowed: 0 means no discount can be given on a quote.
   • Standard commission: used when the agent or broker has no rate of their own.
4. Fill in Eligibility: the lowest and highest sum insured, and the youngest and oldest age you accept.
5. Add your exclusions and terms. They are printed on the policy schedule.
6. Save. The product starts as a Draft.

Coverages

Open the product and use the Coverages tab. Each coverage has a name, an optional limit and deductible, and an extra premium, as a rate, a fixed amount, or both.

Tick Optional add-on for a coverage the customer may choose, such as roadside assistance. Optional coverages appear as tick boxes on each quote. The others are always included.

Rating rules

Rating rules change the premium when something is true about the risk. Use the Rating rules tab and read each rule as a sentence:

When vehicle age is greater than 10, change the premium by 15 percent.

A positive amount adds a loading. A negative amount gives a discount, for example -10 for a no-claims discount.

The things a rule can look at are: age of the insured, gender, sum insured, vehicle age, vehicle use, region, occupation, claims in the last three years, number of members, smoker, and construction type.

Underwriting rules

Underwriting rules decide whether a quote may go ahead without a person looking at it. Use the Underwriting rules tab:

When sum insured is greater than 100,000, then refer to underwriter.

A rule either refers the quote to the underwriting queue or declines it. The reason shown to the user tells the person preparing the quote why. See Underwriting.

How a premium is worked out

Always in this order:

1. Base premium: the rate times the sum insured, or the flat amount. For a period shorter or longer than the standard period, it is reduced or increased in proportion.
2. Plus the coverages that are included or chosen.
3. Plus or minus each rating rule that applies.
4. Plus the underwriter's loading, if one was added.
5. Minus the discount, if one was given.
6. Raised to the minimum premium if the result is lower. This is the net premium.
7. Plus the policy fee, then tax on the total.

Every quote shows these lines, so anyone can see how the price was reached.

Test, then publish

• Test a premium lets you enter a sum insured and a few facts and see the result. Nothing is saved.
• Publish makes the product Active. Only active products can be quoted.
• Retire stops new quotes. Existing policies are not affected.

Changing a rate does not change policies already issued. It applies to new quotes, and to renewals, which are priced with the rates of the day.

When changes need approval

Publishing can be put behind an approval chain. See Approval chains. The chain then also protects a product that is already published, so nobody changes a rate or a rule on their own:

1. On the published product, choose Change this product. It goes back to Draft and cannot be quoted for the moment.
2. Change the product, its coverages or its rules.
3. Choose Publish. The request goes to the approving roles, and the product is active again after the last approval.

Plan such changes for a quiet moment, because the product is not offered on new quotes while it is a draft. The main account can change a published product directly.