NATL » Topics » Underwriting

These excerpts taken from the NATL 10-K filed Mar 12, 2009.
Underwriting
 
We employ a pricing segmentation approach that makes extensive use of proprietary data and pricing models. Our pricing strategy enables our product managers to change the rate structure by evaluating detailed policyholder information, such as loss experience based on driver characteristics, financial responsibility scores (where legally permissible) and the make/model of vehicles. This pricing segmentation approach differs by product line and requires extensive involvement of product managers, who are responsible for the underwriting profitability of a specific product line with direct oversight of product design and rate level structure by our most senior managers. Individual product managers work closely with our pricing and database managers to generate rate level indications and other relevant data. We use this data, coupled with the actuarial loss costs obtained from the Insurance Services Office, an insurance industry advisory service organization, as a benchmark in the formulation of pricing for our products. We believe the quality of our proprietary data, combined with our rigorous approach, has permitted us to respond more quickly than our competitors to adverse trends such as the continuing increase in auto liability loss severity and to obtain accurate pricing and risk selection for each individual account.
 
Risk selection and pricing decisions are discussed regularly by product line underwriters and product managers. We believe this group input and deliberation on pricing and risk selection reaffirms our philosophy and underwriting culture and aids in avoiding unknown exposures. Underwriting files at both our regional and corporate offices are audited by senior management on a regular basis for compliance with our price and risk selection criteria. Product managers are responsible for the underwriting profitability resulting from these risk selection and pricing decisions and the incentive-based portion of their compensation is based, in part, on that profitability.
 
Underwriting
 
We employ a pricing segmentation approach that makes extensive use of proprietary data and pricing models. Our pricing strategy enables our product managers to change the rate structure by evaluating detailed policyholder information, such as loss experience based on driver characteristics, financial responsibility scores (where legally permissible) and the make/model of vehicles. This pricing segmentation approach differs by product line and requires extensive involvement of product managers, who are responsible for the underwriting profitability of a specific product line with direct oversight of product design and rate level structure by our most senior managers. Individual product managers work closely with our pricing and database managers to generate rate level indications and other relevant data. We use this data, coupled with the actuarial loss costs obtained from the Insurance Services Office, an insurance industry advisory service organization, as a benchmark in the formulation of pricing for our products. We believe the quality of our proprietary data, combined with our rigorous approach, has permitted us to respond more quickly than our competitors to adverse trends such as the continuing increase in auto liability loss severity and to obtain accurate pricing and risk selection for each individual account.
 
Risk selection and pricing decisions are discussed regularly by product line underwriters and product managers. We believe this group input and deliberation on pricing and risk selection reaffirms our philosophy and underwriting culture and aids in avoiding unknown exposures. Underwriting files at both our regional and corporate offices are audited by senior management on a regular basis for compliance with our price and risk selection criteria. Product managers are responsible for the underwriting profitability resulting from these risk selection and pricing decisions and the incentive-based portion of their compensation is based, in part, on that profitability.
 
Underwriting
 
We employ a pricing segmentation approach that makes extensive use of proprietary data and pricing models. Our pricing strategy enables our product managers to change the rate structure by evaluating detailed policyholder information, such as loss experience based on driver characteristics, financial responsibility scores (where legally permissible) and the make/model of vehicles. This pricing segmentation approach differs by product line and requires extensive involvement of product managers, who are responsible for the underwriting profitability of a specific product line with direct oversight of product design and rate level structure by our most senior managers. Individual product managers work closely with our pricing and database managers to generate rate level indications and other relevant data. We use this data, coupled with the actuarial loss costs obtained from the Insurance Services Office, an insurance industry advisory service organization, as a benchmark in the formulation of pricing for our products. We believe the quality of our proprietary data, combined with our rigorous approach, has permitted us to respond more quickly than our competitors to adverse trends such as the continuing increase in auto liability loss severity and to obtain accurate pricing and risk selection for each individual account.
 
Risk selection and pricing decisions are discussed regularly by product line underwriters and product managers. We believe this group input and deliberation on pricing and risk selection reaffirms our philosophy and underwriting culture and aids in avoiding unknown exposures. Underwriting files at both our regional and corporate offices are audited by senior management on a regular basis for compliance with our price and risk selection criteria. Product managers are responsible for the underwriting profitability resulting from these risk selection and pricing decisions and the incentive-based portion of their compensation is based, in part, on that profitability.
 
Underwriting
 
We employ a pricing segmentation approach that makes extensive use of proprietary data and pricing models. Our pricing strategy enables our product managers to change the rate structure by evaluating detailed policyholder information, such as loss experience based on driver characteristics, financial responsibility scores (where legally permissible) and the make/model of vehicles. This pricing segmentation approach differs by product line and requires extensive involvement of product managers, who are responsible for the underwriting profitability of a specific product line with direct oversight of product design and rate level structure by our most senior managers. Individual product managers work closely with our pricing and database managers to generate rate level indications and other relevant data. We use this data, coupled with the actuarial loss costs obtained from the Insurance Services Office, an insurance industry advisory service organization, as a benchmark in the formulation of pricing for our products. We believe the quality of our proprietary data, combined with our rigorous approach, has permitted us to respond more quickly than our competitors to adverse trends such as the continuing increase in auto liability loss severity and to obtain accurate pricing and risk selection for each individual account.
 
Risk selection and pricing decisions are discussed regularly by product line underwriters and product managers. We believe this group input and deliberation on pricing and risk selection reaffirms our philosophy and underwriting culture and aids in avoiding unknown exposures. Underwriting files at both our regional and corporate offices are audited by senior management on a regular basis for compliance with our price and risk selection criteria. Product managers are responsible for the underwriting profitability resulting from these risk selection and pricing decisions and the incentive-based portion of their compensation is based, in part, on that profitability.
 
Underwriting


 



We employ a pricing segmentation approach that makes extensive
use of proprietary data and pricing models. Our pricing strategy
enables our product managers to change the rate structure by
evaluating detailed policyholder information, such as loss
experience based on driver characteristics, financial
responsibility scores (where legally permissible) and the
make/model of vehicles. This pricing segmentation approach
differs by product line and requires extensive involvement of
product managers, who are responsible for the underwriting
profitability of a specific product line with direct oversight
of product design and rate level structure by our most senior
managers. Individual product managers work closely with our
pricing and database managers to generate rate level indications
and other relevant data. We use this data, coupled with the
actuarial loss costs obtained from the Insurance Services
Office, an insurance industry advisory service organization, as
a benchmark in the formulation of pricing for our products. We
believe the quality of our proprietary data, combined with our
rigorous approach, has permitted us to respond more quickly than
our competitors to adverse trends such as the continuing
increase in auto liability loss severity and to obtain accurate
pricing and risk selection for each individual account.


 



Risk selection and pricing decisions are discussed regularly by
product line underwriters and product managers. We believe this
group input and deliberation on pricing and risk selection
reaffirms our philosophy and underwriting culture and aids in
avoiding unknown exposures. Underwriting files at both our
regional and corporate offices are audited by senior management
on a regular basis for compliance with our price and risk
selection criteria. Product managers are responsible for the
underwriting profitability resulting from these risk selection
and pricing decisions and the incentive-based portion of their
compensation is based, in part, on that profitability.


 




Underwriting


 



We employ a pricing segmentation approach that makes extensive
use of proprietary data and pricing models. Our pricing strategy
enables our product managers to change the rate structure by
evaluating detailed policyholder information, such as loss
experience based on driver characteristics, financial
responsibility scores (where legally permissible) and the
make/model of vehicles. This pricing segmentation approach
differs by product line and requires extensive involvement of
product managers, who are responsible for the underwriting
profitability of a specific product line with direct oversight
of product design and rate level structure by our most senior
managers. Individual product managers work closely with our
pricing and database managers to generate rate level indications
and other relevant data. We use this data, coupled with the
actuarial loss costs obtained from the Insurance Services
Office, an insurance industry advisory service organization, as
a benchmark in the formulation of pricing for our products. We
believe the quality of our proprietary data, combined with our
rigorous approach, has permitted us to respond more quickly than
our competitors to adverse trends such as the continuing
increase in auto liability loss severity and to obtain accurate
pricing and risk selection for each individual account.


 



Risk selection and pricing decisions are discussed regularly by
product line underwriters and product managers. We believe this
group input and deliberation on pricing and risk selection
reaffirms our philosophy and underwriting culture and aids in
avoiding unknown exposures. Underwriting files at both our
regional and corporate offices are audited by senior management
on a regular basis for compliance with our price and risk
selection criteria. Product managers are responsible for the
underwriting profitability resulting from these risk selection
and pricing decisions and the incentive-based portion of their
compensation is based, in part, on that profitability.


 




Underwriting


 



We employ a pricing segmentation approach that makes extensive
use of proprietary data and pricing models. Our pricing strategy
enables our product managers to change the rate structure by
evaluating detailed policyholder information, such as loss
experience based on driver characteristics, financial
responsibility scores (where legally permissible) and the
make/model of vehicles. This pricing segmentation approach
differs by product line and requires extensive involvement of
product managers, who are responsible for the underwriting
profitability of a specific product line with direct oversight
of product design and rate level structure by our most senior
managers. Individual product managers work closely with our
pricing and database managers to generate rate level indications
and other relevant data. We use this data, coupled with the
actuarial loss costs obtained from the Insurance Services
Office, an insurance industry advisory service organization, as
a benchmark in the formulation of pricing for our products. We
believe the quality of our proprietary data, combined with our
rigorous approach, has permitted us to respond more quickly than
our competitors to adverse trends such as the continuing
increase in auto liability loss severity and to obtain accurate
pricing and risk selection for each individual account.


 



Risk selection and pricing decisions are discussed regularly by
product line underwriters and product managers. We believe this
group input and deliberation on pricing and risk selection
reaffirms our philosophy and underwriting culture and aids in
avoiding unknown exposures. Underwriting files at both our
regional and corporate offices are audited by senior management
on a regular basis for compliance with our price and risk
selection criteria. Product managers are responsible for the
underwriting profitability resulting from these risk selection
and pricing decisions and the incentive-based portion of their
compensation is based, in part, on that profitability.


 




Underwriting


 



We employ a pricing segmentation approach that makes extensive
use of proprietary data and pricing models. Our pricing strategy
enables our product managers to change the rate structure by
evaluating detailed policyholder information, such as loss
experience based on driver characteristics, financial
responsibility scores (where legally permissible) and the
make/model of vehicles. This pricing segmentation approach
differs by product line and requires extensive involvement of
product managers, who are responsible for the underwriting
profitability of a specific product line with direct oversight
of product design and rate level structure by our most senior
managers. Individual product managers work closely with our
pricing and database managers to generate rate level indications
and other relevant data. We use this data, coupled with the
actuarial loss costs obtained from the Insurance Services
Office, an insurance industry advisory service organization, as
a benchmark in the formulation of pricing for our products. We
believe the quality of our proprietary data, combined with our
rigorous approach, has permitted us to respond more quickly than
our competitors to adverse trends such as the continuing
increase in auto liability loss severity and to obtain accurate
pricing and risk selection for each individual account.


 



Risk selection and pricing decisions are discussed regularly by
product line underwriters and product managers. We believe this
group input and deliberation on pricing and risk selection
reaffirms our philosophy and underwriting culture and aids in
avoiding unknown exposures. Underwriting files at both our
regional and corporate offices are audited by senior management
on a regular basis for compliance with our price and risk
selection criteria. Product managers are responsible for the
underwriting profitability resulting from these risk selection
and pricing decisions and the incentive-based portion of their
compensation is based, in part, on that profitability.


 




These excerpts taken from the NATL 10-K filed Mar 10, 2008.
Underwriting
 
We employ a pricing segmentation approach that makes extensive use of proprietary data and pricing models. Our pricing strategy enables our product managers to change the rate structure by evaluating detailed policyholder information, such as loss experience based on driver characteristics, financial responsibility scores (where legally permissible) and the make/model of vehicles. This pricing segmentation approach differs by product line and requires extensive involvement of product managers, who are responsible for the underwriting profitability of a specific product line with direct oversight of product design and rate level structure by our most senior managers. Individual product managers work closely with our pricing and database managers to generate rate level indications and other relevant data. We use this data coupled with the actuarial loss costs obtained from the Insurance Services Office, an insurance industry advisory service organization, as a benchmark in the formulation of pricing for our products. We believe the quality of our proprietary data combined with our rigorous approach has permitted us to


8


Table of Contents

respond more quickly than our competitors to adverse trends such as the continuing increase in auto liability loss severity and to obtain accurate pricing and risk selection for each individual account.
 
Risk selection and pricing decisions are discussed regularly by product line underwriters and product managers. We believe this group input and deliberation on pricing and risk selection reaffirms our philosophy and underwriting culture and aids in avoiding unknown exposures. Underwriting files at both our regional and corporate offices are audited by senior management on a regular basis for compliance with our price and risk selection criteria. Product managers are responsible for the underwriting profitability resulting from these risk selection and pricing decisions and the incentive-based portion of their compensation is based, in part, on that profitability.
 
Underwriting


 



We employ a pricing segmentation approach that makes extensive
use of proprietary data and pricing models. Our pricing strategy
enables our product managers to change the rate structure by
evaluating detailed policyholder information, such as loss
experience based on driver characteristics, financial
responsibility scores (where legally permissible) and the
make/model of vehicles. This pricing segmentation approach
differs by product line and requires extensive involvement of
product managers, who are responsible for the underwriting
profitability of a specific product line with direct oversight
of product design and rate level structure by our most senior
managers. Individual product managers work closely with our
pricing and database managers to generate rate level indications
and other relevant data. We use this data coupled with the
actuarial loss costs obtained from the Insurance Services
Office, an insurance industry advisory service organization, as
a benchmark in the formulation of pricing for our products. We
believe the quality of our proprietary data combined with our
rigorous approach has permitted us to





8





Table of Contents






respond more quickly than our competitors to adverse trends such
as the continuing increase in auto liability loss severity and
to obtain accurate pricing and risk selection for each
individual account.


 



Risk selection and pricing decisions are discussed regularly by
product line underwriters and product managers. We believe this
group input and deliberation on pricing and risk selection
reaffirms our philosophy and underwriting culture and aids in
avoiding unknown exposures. Underwriting files at both our
regional and corporate offices are audited by senior management
on a regular basis for compliance with our price and risk
selection criteria. Product managers are responsible for the
underwriting profitability resulting from these risk selection
and pricing decisions and the incentive-based portion of their
compensation is based, in part, on that profitability.


 




This excerpt taken from the NATL 10-K filed Mar 14, 2007.
Underwriting
 
We employ a pricing segmentation approach that makes extensive use of proprietary data and pricing models. Our pricing strategy enables our product managers to change the rate structure by evaluating detailed policyholder information, such as loss experience based on driver characteristics, financial responsibility scores (where legally permissible) and the make/model of vehicles. This pricing segmentation approach differs by product line and requires extensive involvement of product managers, who are responsible for the underwriting profitability of a specific product line with direct oversight of product design and rate level structure by our most senior managers. Individual product managers work closely with our pricing and database managers to generate rate level indications and other relevant data. We use this data coupled with the actuarial loss costs obtained from the Insurance Services Office, an insurance industry advisory service organization, as a benchmark in the formulation of pricing for our products. We believe the quality of our proprietary data combined with our rigorous approach has permitted us to


8


Table of Contents

respond more quickly than our competitors to adverse trends such as the continuing increase in auto liability loss severity, and to obtain accurate pricing and risk selection for each individual account.
 
Risk selection and pricing decisions are discussed regularly by product line underwriters and product managers. We believe this group input and deliberation on pricing and risk selection reaffirms our philosophy and underwriting culture, and aids in avoiding unknown exposures. Underwriting files at both our regional and corporate offices are audited by senior management on a regular basis for compliance with our price and risk selection criteria. Product managers are responsible for the underwriting profitability resulting from these risk selection and pricing decisions and the incentive-based portion of their compensation is determined in part on that profitability.
 
This excerpt taken from the NATL 10-K filed Mar 21, 2006.
Underwriting
 
We employ a pricing segmentation approach that makes extensive use of proprietary data and pricing models. Our pricing strategy enables our product managers to change the rate structure by evaluating detailed policyholder information, such as loss experience based on driver characteristics, financial responsibility scores (where legally permissible) and the make/model of vehicles. This pricing segmentation approach differs by product line and requires extensive involvement of product managers, who are responsible for the underwriting profitability of a specific product line with direct oversight of product design and rate level structure by our most senior managers. Individual product managers work closely with our pricing and database managers to generate rate level indications and other relevant data. We use this data coupled with the actuarial loss costs obtained from the Insurance Services Office, an insurance industry advisory service organization, as a benchmark in the formulation of pricing for our products. We believe the quality of our proprietary data combined with our rigorous approach has permitted us to


8


Table of Contents

respond more quickly than our competitors to adverse trends such as the increased auto liability loss severity experienced since 1999 and to obtain accurate pricing and risk selection for each individual account.
 
Risk selection and pricing decisions are discussed on a weekly basis by product line underwriters and product managers. We believe this group input and deliberation on pricing and risk selection reaffirms our philosophy and underwriting culture, and aids in avoiding unknown exposures. Underwriting files at both our regional and corporate offices are audited by senior management on a regular basis for compliance with our price and risk selection criteria. Product managers are responsible for the underwriting profitability of these risk selection and pricing decisions and the incentive-based portion of their compensation is determined in part on that profitability.
 
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