Scenario Compare Report
1. What does the Scenario Compare Report do?▸
The Scenario Compare Report enables side-by-side comparison of multiple pricing scenarios, helping users evaluate the impact of different rate strategies before selecting a final pricing approach.
2. What business problem does this report solve?▸
The report helps answer questions such as:
- Which scenario generates the highest premium uplift?
- Which scenario has the lowest customer impact?
- How do multiple pricing strategies compare?
- Which scenario best achieves business objectives?
- What is the trade-off between revenue growth and customer impact?
3. How many scenarios can be compared?▸
Users can compare up to three scenarios. Typical examples include a Base Scenario, Scenario A, and Scenario B.
4. What metrics are compared?▸
The report compares:
- Charged Premium
- Current Premium
- Proposed Premium
- Uplift vs Charged
- Uplift vs Current
- Premium Difference
- Policy Impact Distribution
- Overall Portfolio Impact
5. What is Uplift vs Charged?▸
Uplift vs Charged measures the overall premium movement from the currently billed premium to the proposed scenario premium.
Uplift vs Charged = (Proposed − Charged) / Charged - 100
6. What is Uplift vs Current?▸
Uplift vs Current measures the difference between the scenario's Proposed Premium and the Current Premium. It helps quantify the impact of proposed rates relative to today's rating structure.
Uplift vs Current = (Proposed − Current) / Current - 100
7. What does Uplift vs Current indicate?▸
| Result | Meaning |
|---|---|
| Positive (%) | Proposed rates increase premium compared to current rates |
| Negative (%) | Proposed rates reduce premium compared to current rates |
| 0% | No change from current pricing |
8. What are Revenue Signals?▸
Revenue Signals help assess the financial impact of each scenario. Common metrics include:
- Uplift vs Charged
- Uplift vs Current
- Total Proposed Premium
- Absolute Premium Difference
- Revenue Gain / Loss
These indicators help evaluate the financial outcome of each pricing strategy.
9. What is Absolute Premium Difference?▸
Absolute Premium Difference represents the dollar change between two premium values.
Premium Difference = Proposed − Charged
Example:
- Charged Premium = $120,000
- Proposed Premium = $122,500
- Premium Difference = $2,500
10. How should multiple scenarios be evaluated?▸
Scenarios should be evaluated across three dimensions:
- Financial Impact: premium uplift, revenue growth, portfolio impact
- Customer Impact: Winner/Loser distribution, rate shock, segment impact
- Strategic Objectives: growth targets, profitability goals, regulatory considerations
11. Can Scenario Compare identify the best scenario automatically?▸
No. The report provides comparative metrics and insights, but the final decision remains a business judgement based on revenue goals, customer impact, market conditions, regulatory requirements, and competitive strategy.
12. What should be validated when reviewing Scenario Compare results?▸
Recommended validation checks:
- Total policy counts match expected portfolio size.
- Charged Premium reconciles with uploaded Book of Business.
- Current Premium matches rating engine output.
- Proposed Premium matches scenario calculations.
- Uplift percentages align with premium totals.
- Scenario totals reconcile with underlying reports.
13. When should the Scenario Compare Report be used?▸
The Scenario Compare Report is commonly used for pricing strategy evaluation, rate filing preparation, executive decision making, actuarial reviews, portfolio impact analysis, and regulatory reviews. It is typically the final decision-support report used to determine which proposed pricing strategy should move forward for implementation.