Rating Plugin
This page describes instructions for using the new JavaScript-based rating engine for Socotra, which is replacing the existing Liquid-based rating system.
The plugin will rate all perils for a policy transaction at one time. This allows doing calculations that are common across perils one time, and also makes it easier to manage situations where there are interdependencies between perils, such as in “minimum total premium” scenarios.
The basic approach is that a set of peril characteristics objects each need to be rated. The identities of those characteristics are passed by locator in the policyExposurePerils
property of the data object, and each can be correlated with actual objects that are found in the policy
property, which contains a full PolicyResponse object.
Each ratable peril characteristics must be rated with a RatingPluginPriceResponse object in the return object.
Note
This topic does not apply to rating for Premium Reports. Those continue to use Liquid rating.
Enabling the Plugin
To enable the rating plugin for a product, in that product’s policy.json
file, add a getPerilRates
property to the plugin enablement section. For example:
{
"plugins": {
"getPerilRates": {
"path": "main/rater.js",
"enabled": true
}
}
}
Rating Calculations
Rating is done on a “per-peril” basis, where each segment of each peril is priced independently. There are three options for how the pricing calculation is done:
Specify the premium rate and let Socotra compute the actual price by multiplying by the duration of the segment; or
Specify the actual premium for the segment and let Socotra infer the rate; or
Specify both the actual premium and the rate
You may want to specify exact premium for situations like these:
Charge a flat dollar amount in certain situations
Apply special requirements for premium amounts, such as rounding to the nearest dollar or nickel
Scale by a different method than months, such as by days, or “360 day years”, etc.
Calculate month durations differently than the default calculation
Have the persisted rate to be different from the effective rate, such as in rounding operations
The choice is made by using the properties yearlyPremium
and exactPremium
for each pricing calculation that you return from the plugin. The rules are as follows:
When returning each RatingPluginPriceResponse from the rating plugin, you may now choose to set either yearlyPremium
, exactPremium
, or both.
If yearlyPremium
is set and exactPremium
is not set, the system will divide the yearlyPremium
by twelve and store it on the monthPremium
property of the peril characteristics. It will also calculate the price by multiplying the yearly premium rate by the duration (in years) of the segment, and store it on the premium
property, subject to rounding based on the tenant currency (two places after the decimal for most currencies).
Note
Though the plugin will use the yearlyPrmeium
property to indicate the rate, it will be divided by twelve and stored as monthPremium
on the PerilCharacteristicsResponse. The yearlyPremium
itself will not be persisted.
If exactPremium
is set and yearlyPremium
is not set, then the exactPremium
is the amount that will be rounded and stored on the peril characteristics on the premium
property. In addition, the exactPremium
amount will be divided by the number of months in the interval (using the same month counting algorithm already used for scaling) and will be persisted as monthPremium
.
If yearlyPremium
is set and exactPremium
is also set, then each value will be stored independantly on the peril characteristics as specified, rounded as appropriate (note that yearlyPremium
will be divided by 12 and stored as monthPremium
; yearlyPremium
will not be persisted). In this way you can control both values precisely and independently.
Note
You can mix how each peril characteristics object is handled. For example, you could set exactPremium
for one and yearlyPremium
for another, and both for a third.
Data Object
The following data
object is passed to the plugin for use by the plugin code:
requiredoperation string new_business | endorsement | renewal | reinstatementpolicy PolicyResponsepolicyExposurePerils [RatingPluginCharacteristics]tenantTimeZone stringoptionalendorsementLocator stringnewPaymentScheduleName stringquoteLocator stringrenewalLocator string
requiredpolicyCharacteristicsLocator stringexposureCharacteristicsLocator stringperilCharacteristicsLocator string
Return Object
The object returned from the plugin should take the following form:
requiredpricedPerilCharacteristics map<string,RatingPluginPriceResponse>optionalexceptionMessage string
The pricedPerilCharacteristics
property is a map of the peril characteristics locators that are being priced to the specific pricing information:
optionalcommissions [RatingPluginCommissionsResponse]exactPremium stringyearlyPremium stringyearlyTechnicalPremium string
requiredrecipient stringoptionalyearlyAmount string
Validation
The response from the plugin must conform to the following criteria:
The keys in the return object’s
pricedPerilCharacteristics
map must correspond 1:1 with eachperilCharacteristicsLocator
in the input’spolicyExposurePerils
.No priced characteristics other than those specified in the request should be returned.
Commissions are optional, but if they are included they must each include both a
recipient
and ayearlyAmount
.
Script Example: Calculating by Rate
The following implementation of rater.js
illustrates a simplified rating algorithm:
function getPerilRates(data)
{
let policy = data.policy;
// This is the return object that we'll decorate with rating calculations
let ret = { pricedPerilCharacteristics: {} };
// For each peril characteristics object, look at its peril to get a rating
// factor and then multiply by vehicle value to get the premium.
for (const pep of data.policyExposurePerils)
{
let peril = getPerilFromPerilCharacteristicsLocator(policy, pep);
let exposureCharacteristics = getExposureCharacteristicsFromExposureCharacteristicsLocator(policy, pep);
let vehicleValue = parseFloat(exposureCharacteristics.fieldValues.vehicle_value[0]);
let ratingFactor;
switch (peril.name)
{
case "bodily_injury": ratingFactor = 52.0; break;
case "collision": ratingFactor = 45.5; break;
case "comprehensive": ratingFactor = 32.5; break;
default: ratingFactor = 12.0; break;
}
let yearlyPremium = round2(vehicleValue * ratingFactor / 1000);
ret.pricedPerilCharacteristics[pep.perilCharacteristicsLocator] = {
yearlyPremium: yearlyPremium,
yearlyTechnicalPremium: round2(yearlyPremium * 0.8),
commissions:[
{
yearlyAmount: round2(yearlyPremium * 0.1),
recipient: "broker_abc" // a code that specifies who gets the commission
}
]
}
}
return ret;
}
function getPerilFromPerilCharacteristicsLocator(policy, pep)
{
for (exp of policy.exposures)
for (peril of exp.perils)
if (peril.characteristics.some(c => c.locator == pep.perilCharacteristicsLocator))
return peril;
throw `Peril characteristics ${pep.perilCharacteristicsLocator} not found!`;
}
function getExposureCharacteristicsFromExposureCharacteristicsLocator(policy, pep)
{
for (exp of policy.exposures)
if (exp.characteristics.some(c => c.locator == pep.exposureCharacteristicsLocator))
return exp.characteristics.find(c => c.locator == pep.exposureCharacteristicsLocator);
throw `ExposureCharacteristics ${pep.exposureCharacteristicsLocator} not found!`;
}
function round2(amount)
{
return Math.round(amount * 100.0) / 100.0;
}
exports.getPerilRates = getPerilRates;