I would like to clarify a point arising from the article about our services to corporate insurers ("Actuary offers to help challenge premiums", 26 June, Insurance Times).

Our aim is to help corporate insureds understand their data needs and the processes that underwriters use in modelling and pricing risks. This is to provide them with a better understanding of variability and how an underwriter uses loss data and return-on-capital equations.

However, whenever the insurer is a client of EMB (and this applies to the vast majority of UK general insurers), we inform the underwriter and ask for his permission before proceeding.

The underwriter is usually happy for us to go ahead as, by producing a model that tells the same story to both insurer and insured, we assist the negotiation process.

Karl Murphy

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