Rafique Ahsunollah

🌟 𝐍𝐞𝐰 𝐀𝐁𝐈 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐏𝐫𝐢𝐧𝐜𝐢𝐩𝐥𝐞𝐬: 𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐂𝐡𝐚𝐧𝐠𝐞 𝐟𝐨𝐫 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐋𝐞𝐚𝐝𝐞𝐫𝐬 The Association of British Insurers (ABI) has recently introduced the Premium Finance Principles, marking a pivotal shift towards more transparent and reasonable premium financing. As an insurance pricing director, adapting to these changes is crucial. 1. Transparency and Clarity: Start by reviewing how your current monthly and annual payment structures are communicated. Consider incorporating a straightforward comparison tool on your click-thru page to enhance transparency. 2. Assess Affordability Measures: Reevaluate your customer segmentation and rating factors. Particularly those that determine APR. With the ABI's emphasis on affordability, it's important to ensure that your financial offerings don't disproportionately impact those less able to pay upfront. 3. Fair Value Evaluation: Examine the proportionality of your charges. Are they justified by the service provided? Providing monthly payments does cost more than annual payers. The payments need to be administered and there is increased capital strain. Consider if this is commensurate to the finance charge and therefore the charge does represent value for money from the service provided. 4. Strategic Price Adjustments: To offset potential revenue reductions from lower finance charges, consider your existing cross-subsidies by looking at both actual and expected loss ratios. Where would the price changes be best placed to ensure individual customers are treated reasonably? If possible this does not mean an across-the-board increase. 5. Enhanced Governance: Strengthen governance and analysis to monitor the implementation and effects of these new pricing structures and rates. Conclusion: These principles present an opportunity to enhance your company’s value proposition by aligning more closely with consumer needs and expectations. 🔗 Link to the ABI announcement: https://lnkd.in/eAFczfGr Stay tuned for next month's FREE masterclass on Data. We're gearing up for a deep and technical dive into how to set up data to best analyse and set prices including exposure, claims, and quotes. 📅 Save the date for our next masterclass on Data scheduled for 21st May, from 10:00 to 10:30 AM UK time. 📝 Registration is open! Secure your spot via this link https://tally.so/r/mVzY0N and take the next step in your professional journey with us. 📚 Special Offer: Attendees of this upcoming masterclass will receive a complimentary paper edition of "Price Writer -The Nine-Step Method to Becoming a Highly Successful Pricing Leader,". We look forward to welcoming you to an enriching session and helping you achieve your goals in the world of GI Pricing. Register with this link https://tally.so/r/mVzY0N #GeneralInsurance #PandCInsurance #InsurancePricing #PriceWriter

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Interested in a different perspective on how to manage and optimise your captive insurance strategy? Our latest Pacific market update shares some interesting insights below. #captives #captiveinsurance Jessica Schade

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