SmartHelping / Product & Service Insurance / Excel
Insurance Pricing Actuary Model
Estimate what to charge for a one-time insurance package on a product or service. Enter the cost of satisfying a claim, the probability of a claim during the coverage period, and your desired return on expected costs.
Review the calculated price per package and compare prices across different return targets using the included table.
Immediate download after purchase. By purchasing, you agree to the Terms of Service.
Model walkthrough
See how claim assumptions translate into a price.
Explore the Excel model's inputs, target-return calculation, and pricing comparison table.
The drivers behind the price
Connect expected claim costs with your return target.
Use your assumptions about the covered product or service to calculate a modeled charge for each insurance package.
Cost to satisfy a claim
Enter the expected cost of fixing the covered issue when a customer makes a claim.
Probability during the coverage period
Enter the percentage chance that a claim occurs within the timeframe you are evaluating.
Desired return on expected costs
Use the target-return input to specify the return you want on modeled expected costs and see the corresponding price per package.
Return and price comparison table
Enter different return percentages in the included table to compare the resulting charges using the main assumptions.
Compare pricing alternatives
See the price associated with different return targets.
The model includes a target-return input and a table for comparing multiple return percentages. Both use the claim assumptions entered in the workbook.
Your target is expressed as a return on expected costs. Review how changing that target affects the charge per package, then revisit the claim cost and probability assumptions when evaluating another product, service, or coverage period.
How to use the model
Build the price from claim assumptions and a return target.
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Estimate the claim cost
Identify the issue the package covers and enter the expected cost of satisfying a claim.
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Set the claim probability
Estimate the likelihood of a claim over the coverage period being evaluated and enter that percentage.
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Choose a target return
Enter your desired return on expected costs and review the calculated charge per product or service insurance package.
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Compare pricing alternatives
Use the return comparison table to see prices at different target percentages while keeping the main assumptions consistent.
Common questions
Before you model your insurance-package pricing.
What is this model designed to price?
It is designed to estimate the one-time charge for an insurance package attached to a product or service, where the business covers the cost of a specified issue during a defined period.
What are the main inputs?
The main drivers are the cost to satisfy a claim, the probability of a claim during the period being evaluated, and the desired return on expected costs.
What does the model calculate?
It calculates the charge per insurance package based on the assumptions and target return you enter.
Can I compare several return targets?
Yes. The included table lets you enter different return percentages and review the resulting prices using the main assumptions.
Which period should the claim probability cover?
Use a probability that corresponds to the coverage period you are evaluating so the pricing assumptions refer to the same timeframe.
When can I download the model?
The Excel template is available to download immediately after purchase.
Make the pricing assumptions visible
Connect claim costs, probability, and price.
Evaluate product or service insurance pricing with a clear target-return calculation. Need a tailored model? Contact Jason.
