Modifiers in mind map in Advanced Product Designer
Advanced Product Designer supports two rate modifier types in the product mind map: unscheduled modifiers, which apply a single adjustment, and scheduled modifiers, which apply multiple rate factors. Understanding each type helps product designers model premium adjustments accurately.
Rate modifiers are used to adjust a policy's premium based on a set of risk characteristics, as described in Rate modifiers in Advanced Product Designer.
Unscheduled rate modifier
A rate modifier that does not have multiple rate factors is called an unscheduled
rate modifier. For example, an experience modifier, often used in commercial lines
of business, is modeled as an unscheduled rate modifier. This modifier has a minimum
value of -0.5 and a maximum value of 0.5.
Scheduled rate modifier
Scheduled rate modifiers are often used in commercial lines of business, and include
multiple rate factors. For example, an Individual Risk Premium Modification (IRPM)
for a commercial property product has the following rate factors:
- Location (-0.05 to 0.05)
- Premises (-0.1 to 0.1)
- Equipment - Type, Condition, Care (-0.1 to 0.1)
- Cooperation with carrier by management (-0.02 to 0.02)
- Safety Organization (-0.02 to 0.02)
- Employee Qualifications (-0.06 to 0.06)