|12th/13th December 2011 | Ljubljana / Slovenia|
Pricing an insurance product is a process which requires a lot of knowledge and experience. The price is the outcome of the economic process of demand and supply, and it should create profit for insurers. Within the pricing process the insurance company has to first calculate its cost price related to insurance risks embedded in the product. Based on expertise main features of products are set, which are then fine-tuned using actuarial calculation. An important part of pricing is also the underwriting process. Actuaries can play an important and maybe even leading role in this process.