Rate Comparison Report
1. What is the Rate Comparison Report?▸
The Rate Comparison Report is a portfolio analysis report used within the What-If Scenario framework to evaluate the impact of proposed rate changes on an existing Book of Business. The report compares premiums generated under different rating approaches and helps business users understand how proposed pricing strategies affect the portfolio.
2. What is the purpose of the Rate Comparison Report?▸
The report helps business users:
- Analyse the impact of proposed rate changes
- Compare current and proposed pricing strategies
- Measure portfolio-level premium movement
- Understand premium changes at policy and coverage levels
- Support actuarial and filing analysis
- Quantify revenue impact before implementation
- Validate proposed rate changes against the existing Book of Business
3. What rate types are compared in the report?▸
| Rate Type | Description |
|---|---|
| Charged Rate | Actual rate currently charged on the Book of Business |
| Current Rate | Current rate generated using the currently approved rate plan |
| Proposed Rate | Proposed rate generated using the proposed What-If scenario rate plan |
4. What KPIs can be used in the report?▸
The report supports configurable KPI dimensions sourced dynamically from the KPI Builder.
| Category | Examples |
|---|---|
| Risk Attributes | Risk Type, Risk Tier, Driver Class |
| Coverage Attributes | Liability, Collision, Comprehensive |
| Form Attributes | Endorsements, Forms |
| Vehicle Attributes | Vehicle Type, Vehicle Symbol |
| Premium Attributes | Premium Band, Change Band |
| Geographic Attributes | State, Territory |
| Policy Attributes | Policy Type, Renewal Type |
5. What metrics are displayed in the report?▸
| Metric | Description |
|---|---|
| Charged Premium | Existing premium from Book of Business |
| Current Premium | Premium generated using current rate plan |
| Proposed Premium | Premium generated using proposed scenario |
| Variance | Difference between premium values |
| Percentage Change | Percentage movement between premium values |
| Revenue Impact | Aggregate premium impact |
6. How is Proposed vs Current Percentage Change calculated?▸
Δ(%) = (Proposed − Current) / Current - 100
Example:
- Current Premium = $100,000
- Proposed Premium = $105,000
- Result: +5.0% increase
7. How is Proposed vs Charged Percentage Change calculated?▸
Δ(%) = (Proposed − Charged) / Charged - 100
Example:
- Charged Premium = $98,000
- Proposed Premium = $105,000
- Result: +7.14% increase
8. What is the difference between Proposed vs Current and Proposed vs Charged?▸
Proposed vs Current compares the Proposed Scenario against the Current Approved Rate Plan and is used to evaluate the incremental impact of the proposed rate changes.
Proposed vs Charged compares the Proposed Scenario against the Actual Premium Currently Charged and is used to evaluate the overall customer impact.
9. What is drill-down analysis?▸
Drill-down allows users to move from summary-level results to detailed data.
Example flow: Portfolio Level → State → Coverage → Policy → Rate Component
This helps identify the drivers behind premium changes.
10. How does filtering affect the report?▸
When filters are applied, all metrics (policy counts, premiums, variances, percentage changes) recalculate to reflect only the filtered population.
11. What business questions can this report answer?▸
The report helps answer:
- What is the impact of the proposed rate change?
- Which states are most affected?
- Which coverages drive premium changes?
- What is the expected revenue impact?
- How do current and proposed pricing strategies compare?
- Which policies contribute most to premium movement?
- Are proposed changes aligned with business objectives?
12. How is the report used during the What-If process?▸
Typical workflow:
- Upload or select a Book of Business.
- Create one or more What-If scenarios.
- Rerate the portfolio using the Current Rate Plan and Proposed Rate Plan.
- Select KPI dimensions.
- Review premium comparisons.
- Analyse variances and revenue impact.
- Drill into detailed results.
- Compare alternative pricing strategies.
- Finalise business recommendations.
13. Why do displayed premiums sometimes appear identical but show different percentage changes?▸
Premium values displayed in the report are rounded for readability. Percentage calculations use the underlying premium values with full precision. As a result, two premiums may display as the same rounded value while percentage changes still differ. This behaviour is expected and ensures calculation accuracy.