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BC-2026-017 · Lead: Actuarial · Sponsor: David Okafor
Pricing model rebuild
High priorityQueried (RFI)Start 2027
- Gate 1Business Case
- Gate 2Charters
- Gate 3ROI Overview
- Gate 4Submitted
- Gate 5Queried (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
- 2026-09-05 · RFIExCo requested model risk assessment
- 2026-04-11 · SubmittedSubmitted to ExCo