Pricing in General Insurance

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Pricing Process: A Gentle Start

Pricing is a complex endeavour, which is best conceptualised as a process or even as a

project: that is to say, an undertaking with a beginning and an end and a number of dif-

ferent tasks to be executed in a certain order. To get a fair idea of what the pricing process

entails without getting bogged down into the details that inevitably need to be considered

in any realistic example, we will start looking at a very simple example of pricing, car-

ried out in a rather traditional, non-actuarial way. Despite its simplicity, this example will

contain all the main ingredients of the pricing process that we will ex ...