304 Pricing in General Insurance
plan and will include parameters designed to promote coherent and consistent decision
making. Individual pricing decisions are then made and monitored to track variance to
plan. The exibility allowed will vary depending on the risks involved; for big-ticket com-
mercial risks, there is scope for commercial judgement and every pricing calculation will
be subject to close scrutiny, but for high-volume personal lines, there will be limited dis-
cretion to move away from book rates. In any case, there will be the usual consideration of
the effect on prot, cash ow, risk, market share, portfolio mix and so on.
19.4.3 Is the Pricing Control Cycle Really a Cycle?
One look at Figure 19.11 suggests that the pricing control ...