What is the AXIS Pricing Report and where is it accessed?
The Pricing Report in AXIS is accessed via Results (Policy Year) / Pricing. It provides key pricing and profitability measures for insurance projections, helping actuaries evaluate product performance.
What does ‘Present Value of Accumulated Profit per 1,000 initial face’ represent?
It shows the discounted value of total profit generated by the policy, standardized per $1,000 of initial face amount, allowing for easy comparison between products or cells.
What are ROI values in the AXIS Pricing Report?
ROI (Return on Investment) values measure profitability relative to the initial investment, showing how efficiently premiums and reserves generate returns.
What are profit measures in the AXIS Pricing Report?
Profit measures summarize overall performance through indicators like total profit, profit margins, and the timing of profit emergence over the policy duration.
What is the Present Value of Profit (at the ultimate duration)?
It is the discounted total profit at the end of the policy term, representing the long-term value of the business under current assumptions.
What is ‘Strain’ in AXIS pricing reports?
Strain is the negative of first-year profit. It reflects the initial financial loss due to high acquisition costs and reserve setup before future profits emerge. Example: A -$500 strain means the insurer spends $500 more than earned in year 1.
What is ‘Margin’ in AXIS pricing results?
Margin is the ratio of profit to premiums or reserves, showing how much profit is earned per unit of business. It’s a measure of product profitability efficiency.
What does ‘Break Even Year’ indicate in pricing results?
The Break Even Year is the policy year when cumulative profits first become positive—when total income finally exceeds total expenses.
What are ‘Indicators’ in the AXIS Pricing Report?
Indicators include key summary metrics like first-year premium, commission, and bonus amounts, along with present values of cash flows used for profitability analysis.
