Exposure pricing in visualized product

With exposure pricing, exposure to risk provides the basis for rating. For example, the cost of Phone Damages coverage is a based on household members of various age ranges.

Add exposure pricing in visualized product

About this task

You can define exposure pricing on the Exposure tab in Product Definition and a submission or other policy transaction. These steps reference the mind map in Exposure pricing in visualized product.

This example uses the following mind map with an exposure and exposure fields. The Cell Phone risk object has a Household Exposure with Household Members drop-down list. Household members can be Children, Teens, or Adults. The exposure also has a Number by Age Range number topic where you can specify the number of household members in a particular age range.

The Phone Damages coverage has a Premium pricing topic that will be based upon Number by Age Range. When you import the mind map, pricing topics and their relationships are dropped. You recreate this relationship in the visualized product.

Procedure

  • Product Definition: define exposures
    1. In Product Definition, go to the Exposures tab on the risk object.
    2. In the exposure, select Fields to display the Exposure Fields popup.
    3. To display a field for pricing that is a basis for other fields, select Basis Key.
      For example, your choice in Household Members is the basis for Number by Age Range. Therefore, select Basis Key on the Household Members drop-down list.
  • Submission: define pricing
    1. Create a submission on the product and add instances of the exposure and the coverage whose pricing is based on the exposure. For example:
      1. Add a Cell Phone risk object with Loss of Phone coverage.
      2. Select the Exposures tab, click Add Household Exposure for Children, Teens, and Adults, and specify the Number by Age Range for the current submission.
    2. Advance to the Pricing screen or Risk Object Pricing popup for the risk object.
    3. Add a cost and set Basis Attribute to an attribute on an exposure. In this example, add a Premium cost and set the basis attribute to Household Exposure : Number by Age Range.
      Because you selected an attribute on an exposure, the Exposure Pricing button is enabled.
    4. Click Exposure Pricing.
    5. To test generating the premium, enter a Rate for each exposure.
    6. Add the coverage for which this exposure is the basis. In this example, add Phone Damages coverage.