E113 - CLASSIC - Dr Philip Conway - Peril Pricing in Insurance & What It Means for You

In the ever-changing landscape of the insurance industry, one
thing remains a constant.


The need for insurers to price their products in order to better
manage portfolio risks.


This week, TAS is back with another classic episode from early
2021.


This is Episode 42 returning as Episode 113.


For the many of you with insurance plans of our own, have you
ever wondered about the inner workings of your providers?
Meet Dr Philip Conway

Philip’s Role as a Pricing Leader at IAG


Dr Philip Conway is the Executive Manager of Pricing &
Engineering at Insurance Australia Group Limited (IAG). IAG is
Australia and New Zealand's largest general insurance company.
The company has been helping people recover from natural
disasters, accidents, and loss since 1851. They provide insurance
services under many leading brands and underwrite over $11
billion of premium per annum. Extending beyond paying claims,
they are increasing awareness of risk and helping communities
reduce and prevent it.
Philip’s Other Work in Engineering

Philip has a background in engineering with a PhD in hydrodynamic
modelling along with extensive working experience in natural
disaster control as a flood engineer. Prior to joining IAG, he
was Flood Engineer and Design Engineer at WMAwater and Atkins
respectively. He has also written and published multiple papers
on related subject areas. His research topics include Australian
flood risk to climate drivers and role of exposure, capital, and
infrastructure in post-disaster recovery among others.


At IAG, Philip has previously led teams for natural perils and
reinsurance pricing engine development and advises c-suite
executives on regulatory protection level requirements and group
stress tests. He has also worked on numerous solution designs and
developments related to address-level earthquake rates,
benchmarking of vendor catastrophe models, deterministic volcano
model, generating storm damage footprints, flood risk, and
climate change.
Perils Pricing, Risk, and Collaboration

In this exclusive analytics podcast episode, Philip shares:


How natural perils pricing helps in better managing portfolio
risks for insurers

The pricing analytics philosophy that works behind natural
perils pricing

A hybrid approach to solutions development where internal and
external parties, resources, and models collaborate as needed

The use of frequency and severity data of natural perils in
insurance pricing

Conducting stress tests and risk management to tackle severe
perils

When to use external, internal, and hybrid models

Solutions for this with real use cases

Analytic philosophy for embedding the results of analytics
into business processes to create reusable end to end solutions

The best way to choose models, software, and data sources
from external parties

Overcoming the challenges of global warming on natural perils
pricing and analytics

Utilising XY coordinates Geographic Information System (GIS)
in perils pricing

The benefits and functions of perils pricing in action

How insurers and reinsurers mitigate and diversify risks
through strategic collaboration



If you are connected with the insurance and financial industry
and want to know more about the inner workings of a company like
IAG, this is the episode you do not want to miss.