In working on a technical analysis (GLIM) at the moment and I have a couple of questions... I've created frequency/severity models for TPI/TPD etc. using all potential rating factors. I will be presenting the results to underwriting and then requesting feedback based on whether each significant factor can be implemented, any restrictions on rating (e.g. max loads/discounts etc.) In order to get the necessary feedback I need to proceed I presumably need to create a combined model and present the results of that to the underwriters? Since I will be changing all the models once I know which factors are not implementable, do I need to bother with adjustments like profit margin expenses reinsurance loading etc. at this stage or can this wait until I am coming up with the technical rates (rates with implementable factors)? Say the underwriters feedback is that 6 factors are not implementable. Do I need to adjust all of my individual freq/sev models and re-model all of the factors or is that overkill. I presume an impact analysis, testing model prediction via an out-of-sample is done after this stage Many thanks
