RC-Risk Based Pricing
A hurdle rate, delivered inside the underwriter’s own system
The problem
Risk-based pricing usually fails not because the model is wrong but because it is somewhere else. The pricing tool sits with the actuarial team; the underwriter works in the core underwriting system; and the hurdle rate arrives, if at all, after the quote has gone out. RC-Risk Based Pricing is designed to be consumed rather than visited. It exposes a REST API into the system the underwriter already uses — and offers its own interface for those who want one.
What it does
Pricing for credit and political risk insurance. From one controlled parameter workbook it computes PD, LGD, expected and unexpected loss and the premium — base, mid and stressed — and reaches underwriters through a REST API into your core system or its own interface.
Who uses it
Credit and political risk insurers, Export credit agencies, Multilateral development banks, Bank finance functions
What’s inside
PricingExpected loss, unexpected loss and overhead charges · Premium rate per exposure · Base, mid and stressed cases · Individual exposures or whole portfolios
ConfigurationOne parameter workbook, owned by administrators · Sovereign, bank and corporate models · Transition matrices and term structure · Overheads and cut-offs
Risk parametersInternal grade and S&P-equivalent rating · One-year PD and PD to maturity · LGD by exposure · Grade bands and aggregate summaries
DeliveryREST API into your core underwriting system · Web interface with Excel export · Administrator, underwriter, user and auditor roles · Audit log
What changes for your risk team
- A consistent hurdle rate for every exposure, priced inside the underwriter’s own system.
- Governance built in: administrators own the parameters, analysts experiment, underwriters price against a controlled set.
- Ratings, PDs and LGDs computed once, consistently, for every exposure you price.
How it feeds the rest of the suite
- Your core underwriting system: prices and pricing charges over REST
- Risk and finance: filtered pricing views and Excel exports
Papers built on this model
See RC-Risk Based Pricing on your own data
A demo takes an hour. A pilot on your portfolio takes weeks, not quarters.