Premium Displacement Report
1. What is the Premium Displacement Report?▸
The Premium Displacement Report provides a portfolio-level view of premium movement across the Book of Business by comparing Charged Premium, Current Premium, and Proposed Premium. It helps users understand the financial impact of proposed rate changes and how premiums shift across the portfolio.
2. What is Charged Premium?▸
Charged Premium represents the premium currently booked in the Book of Business.
Charged Premium = Σ Charged Premium of all in-scope policies
3. What is Current Premium?▸
Current Premium is the premium recalculated by the iFoundry Rating Engine using the currently active rates, without applying any proposed changes. It represents what the portfolio would look like if all policies were rated today using existing production rates.
4. What does "Current vs Charged %" mean?▸
This metric shows the percentage difference between the Current Premium and Charged Premium.
Δ(%) = (Current − Charged) / Charged - 100
Example:
- Charged Premium = $109.1K
- Current Premium = $109.2K
- Current vs Charged = +0.1%
5. Why can Charged Premium and Current Premium be different?▸
Differences may occur due to:
- Updated rating versions
- Rate changes since policy issuance
- Rounding differences
- Rating engine recalculation logic
- Historical premium adjustments
6. What is Proposed Premium?▸
Proposed Premium is the premium calculated after applying the proposed scenario changes to all in-scope policies. It represents the projected premium under the proposed filing or rate revision.
7. What does "Proposed vs Current %" mean?▸
This metric shows the percentage change between Proposed Premium and Current Premium.
Δ(%) = (Proposed − Current) / Current - 100
8. What is Total Uplift?▸
Total Uplift represents the overall premium impact from Charged Premium to Proposed Premium, showing both the total dollar impact and overall percentage increase or decrease.
Δ(%) = (Proposed − Charged) / Charged - 100
Example:
- Charged Premium = $109.2K
- Proposed Premium = $110.0K
- Increase = $0.8K
- Total Uplift = +0.71%
9. What do the Policy Counts represent?▸
Policy counts show the total number of policies included in the analysis.
Example:
- Total Policies = 60
- Active Policies = 45
- Renewal Policies = 15
10. What is an Active Policy?▸
An Active Policy is currently in force and included in the selected Book of Business.
11. What is a Renewal Policy?▸
A Renewal Policy is scheduled for renewal during the selected analysis period.
12. How do filters affect the report?▸
The report supports dynamic filtering. Users can filter by dimensions such as:
- State
- ZIP Code
- Territory
- Agent Code
- Product
- Coverage
- Risk Segment
When filters are applied, all metrics (policy counts, premiums, percentage changes) are recalculated to reflect only the filtered population.
13. What is the Policy-Level Premium Breakdown table?▸
The Policy-Level Premium Breakdown provides detailed premium comparisons for individual policies.
| Column | Description |
|---|---|
| Charged | Original premium billed to the policyholder |
| Current | Premium recalculated using current rates |
| Δ Cur vs Chg | Percentage change between Current and Charged |
| Proposed | Premium under the proposed scenario |
| Δ Prop vs Cur | Percentage change between Proposed and Current |
14. Why do report totals sometimes differ from manually calculated values?▸
Displayed premium values are typically rounded for readability, while percentage calculations use full underlying precision. This behaviour is expected and ensures calculation accuracy.
15. What business questions does this report answer?▸
The Premium Displacement Report helps answer:
- What is the overall premium impact of the proposed rate change?
- How does the proposed premium compare to current and charged premiums?
- Which policies experience the largest premium changes?
- How many policies are affected by the proposed scenario?
- What is the total portfolio uplift or decrease?
- How does premium impact vary across different segments and geographies?