Commercial pricing: the technical price and the underwriting quote
Commercial pricing can include portfolio indications, individual-account analysis and consultation with underwriters. The balance depends on the product and account size.
A practical handoff
For a large account, an analyst can prepare an exposure summary, adjusted historical losses, loss-development selections, expected future losses, expenses and a range of technical premiums. Changes in limits, deductibles, operations and locations need to be reflected before comparing last year’s quote with this year’s indication.
Suppose an account’s past premium was 200,000 but its payroll doubled. A 10% nominal premium increase does not necessarily mean a higher rate per unit of exposure. First put both years on comparable exposures and coverage.
Why experience is not the whole answer
A thin account history may receive a credibility blend with a broader exposure-based benchmark. The absence of a large claim in three years does not establish that the account has no large-loss risk. Policy limits and attachment points affect which losses belong in the analysis.
Underwriting then considers coverage, terms, appetite and commercial conditions within its authority. The quoted price can differ from an actuarial technical estimate; the reason and expected portfolio effect should be visible.
Recurring work and projects
Renewal reviews and underwriter questions recur. A new rating tool, class model or large-account methodology is a project. Ask whether the job owns production tools, portfolio monitoring, account referrals or all three.
Reading sources
ActNet editorial guide · October 1, 2026 · Original illustrative examples.