Advanced pricing methods for property and casualty isurance
Pricing risks is of pivotal importance for the insurer’s well-being. Indeed, inappropriately determined prices, whether too high or too low, may result in insolvency of insurance policies, failure of business lines, and even bankruptcy of entire insurance enterprises. This project will help Wawanesa Insurance to develop sophisticated pricing techniques that will take into account (a) exogenous pricing factors, and (b) interdependencies among risks. Wawanesa Insurance will therefore benefit from the resulting competitive advantage. Also, as strong insurance sector is often linked to the stability of the state’s financial system, the entire Canadian community will benefit from the outcomes of this research project.