From the course: Excel for Banking Professionals

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Using Excel in pricing analysis

Using Excel in pricing analysis - Microsoft Excel Tutorial

From the course: Excel for Banking Professionals

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Using Excel in pricing analysis

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- [Instructor] Running an effective insurance business is really all about discipline in your pricing book. An Excel can help us to do basic calculations to decide whether or not we're being disciplined with that pricing. Let's take a look. I'm in the 04, 03 begin Excel file. Now we've got here is a set of hypothetical data related to eight different policy holders. We have the coverage amounts and then characteristics of those policy holders, including their ages, whether they're male or female, the number of miles driven in a given year. This is probably for car insurance or something similar, the annual premium they pay and then whether or not we have a loss on those individuals at some point in the past. So what we need to do is use this data on policy holders to decide whether or not we're making accurate pricing estimates. In particular, if these annual premiums are reasonable or if we should be charging a different…

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