An effective pricing framework evaluates the sustainable technical price and rate adequacy. The guidance covers pricing coverage (a technical price for every line, territory and segment, portfolio-level at the baseline, individually modelled where proportionate at higher levels); claims pricing methodology (allowance for attritional, large and catastrophe claims, use of experience or exposure data, justified expert judgement, validation and peer review, growing to full loss distributions, peril-level models and quote data); non-claims cost loadings reconciled to the plan and a view of risk such as return on capital; delegated authority pricing understood before any agreement, with contracts requiring performance and pricing data; models reviewed with recalibration considered annually; price adequacy and rate monitoring with a nominated director responsible, measuring price adequacy against benchmark and technical premiums and renewal rate change (RARC) across open market and delegated business; technology and data governance meeting Solvency II; data collection and storage; resourcing of the pricing function; interaction with claims, reserving, capital, reinsurance and exposure management; and pricing training.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.