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BC-2026-017 · Lead: Actuarial · Sponsor: David Okafor

Pricing model rebuild

High priorityQueried (RFI)Start 2027
  1. Gate 1
    Business Case
  2. Gate 2
    Charters
  3. Gate 3
    ROI Overview
  4. Gate 4
    Submitted
  5. Gate 5
    Queried (RFI)

Stage-gate decision

1 · Core business case

Move motor pricing to a machine-learning GLM hybrid with weekly refresh.

Benefits of doing it

  • 1.5pt loss ratio improvement
  • Faster rate changes
£1.50m / yr

Cost of not doing it

Adverse selection as competitors reprice faster.

£2m / yr

Strategic aims

Profitable growthRisk reduction

2 · Departmental charters

Each participating department signs a charter with its own mini business case and funding contribution.

Actuarial£900k(50%)
Model governance
Owns models.
✓ Signed
David Okafor · 2026-08-14
Underwriting£400k(22%)
Sharper rates
Deploys pricing.
✓ Signed
Lucy Grant · 2026-08-14
IT£300k(17%)
Cloud compute
Hosting and MLOps.

3 · ROI overview

Total investment£1.80m
Annual benefit£1.50m
Payback1.2 yrs
3-year ROI150%
3-yr cost of inaction£6m

Funding position

Committed (signed)£1.30m
Pledged, unsigned£300k
Funding gap£500k
Outstanding sign-offs1

History

  1. 2026-09-05 · RFI
    ExCo requested model risk assessment
  2. 2026-04-11 · Submitted
    Submitted to ExCo