Policy Pricing Assistant Agent
Calculate compliant policy premiums using applicant risk data
Description
Challenge:
Manual premium calculation is complex, error-prone, and time-consuming. Underwriters must consider multiple risk factors, actuarial tables, product rules, and regulatory caps. Errors can lead to non-compliant pricing, financial losses, or customer dissatisfaction.
How It Works:
The Policy Pricing Assistant Agent integrates applicant demographics, medical history, occupation, lifestyle, and financial data with product-specific pricing rules and actuarial tables. It applies risk loadings, discounts, rider pricing, and regulatory caps to dynamically calculate premiums. The agent provides a detailed breakdown of assumptions, adjustments, and final pricing, enabling underwriters or customer platforms to make informed decisions. It supports real-time “what-if” simulations for alternative risk scenarios and maintains a full audit trail for transparency and compliance.
Benefits:
90–95% reduction in manual premium calculation errors
Real-time premium computation (seconds vs. hours)
25–40% faster underwriting cycles
Improved pricing accuracy, enhancing portfolio loss ratio predictability by 10–15%
Transparent and auditable premium breakdowns
Compliance with regulatory and actuarial pricing standards
Ability to simulate multiple risk scenarios for decision support
Features
This agent ensures consistent, transparent, and compliant premium calculation by combining actuarial data, underwriting rules, and applicant-specific risk factors.
Features & Capabilities:
Data Capture: Collect applicant demographics, medical, occupational, lifestyle, and financial information
Base Premium Retrieval: Fetch product rate tables from actuarial sources
Risk Adjustment: Apply medical, occupation, and lifestyle loadings
Discount Application: Factor in eligibility-based discounts (e.g., non-smoker, family cover)
Regulatory Check: Validate premium against caps and fairness rules
Premium Generation: Compute final premium with detailed breakdown
Rider Pricing: Calculate add-on rider premiums separately and integrate
Audit Logging: Record all assumptions, loadings, and calculations
Simulation & “What-If”: Model alternative scenarios for risk and profitability analysis
Operating Blueprint
Knowledge Sources:
Actuarial Pricing Tables (mortality, morbidity, lapse assumptions)
Product Pricing Guidelines (base rates, loadings, discounts)
Underwriting Risk Manuals (occupation, lifestyle, medical loadings)
Regulatory Pricing Rules (caps, fairness, solvency)
Historical Claims Data (loss ratios, incidence rates)
Business Rules:
Age-Based Mortality Factor → Align premium with age-specific risk
Occupation Risk Loading → Apply hazard multipliers for high-risk jobs
Lifestyle Adjustments → Smoker or hazardous hobbies increase premium
Medical History Loading → Apply product-defined loadings or exclusions
Income-to-Premium Affordability → Ensure premium ≤ X% of annual income
Discount Eligibility → Apply standard and loyalty discounts
Rider Pricing → Calculate separately and add to base premium
Regulatory Pricing Caps → Ensure premiums do not exceed mandated limits
Profitability Margin Check → Maintain required loss ratio buffer
Consistency Validation → Cross-check premium against benchmark ranges
Tool Workflow:
Data Input: Capture applicant and product information
Base Premium Retrieval: Fetch actuarial tables and base rates
Risk Adjustment: Apply medical, occupational, and lifestyle loadings
Discount Application: Apply eligible discounts
Regulatory Check: Validate compliance with caps and affordability guidelines
Premium Generation: Calculate and provide detailed breakdown
Audit Logging: Record assumptions and calculations
Output Delivery: Present premium to underwriter or customer-facing platform
Simulation: Run “what-if” scenarios for alternative risk adjustments
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