GGenerali CentralExecutive Cockpit

Simulation — What happens if we do it?

Layer 4 of the decision stack. Pull the levers the business actually debates — rate, retention, leakage recovery, expenses, reinsurance cession, investment yield, bancassurance growth — and see the combined ratio, PAT, underwriting result and solvency recompute against the audited FY25 book.

Generali Central Insurance Company Limited · FY25 (Mar'25, audited)
Mid-tier private multiline general insurer — Top-10 private (rank ~10)
2,644 employees · 167 branches · 21,000+ agents
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Deterministic

Portfolio & capital simulation

Computed

Every figure here is arithmetic, not generated text. Move a slider and the model recomputes synchronously from the reconciled baseline — the same levers always produce the same answer.

Scenario
Levers
0.0%

Price on renewal. Elasticity gives back 35% of the gain as lapse.

0.0pts

Change in policy retention, in percentage points of GWP.

0.0%

Fraud, waste and abuse recovered as a share of incurred claims.

0.0%

Change in management expenses. Negative is cost out.

0.0pts

Additional cession of NEP. Sheds claims and required capital with it.

0.0pts

Change in yield on the ₹7,938 Cr book.

₹0 Cr

New GWP from the Central Bank channel.

₹0 Cr

Gross insured CAT loss. 70% recovered from the XoL treaty; 10% reinstatement on the recovery.

112.6%
Combined ratio
0.0 pts vs 112.58%
₹97 Cr
PAT
+2.7 vs ₹93.9 Cr
₹-472 Cr
Underwriting result
0.0 vs −₹471 Cr
1.97×
Solvency
floor 1.50× · +0.0
PAT bridge — FY25 to simulated
FY25 PAT
₹94 Cr
Premium & mix
0.0
Claims & leakage
0.0
Commission
0.0
Expenses
0.0
Investment income
+3.3
Simulated PAT
₹97 Cr
Combined ratio decomposition
79%
15%
19%
Loss 78.9%Commission 14.7%Expense 19.0%NEP ₹3,753 Cr

One combined-ratio point is 37.5 Cr on net earned premium. Baseline is the 112.58% these components actually foot to — +0.58 pts against the published 112% headline, which is rounding in the book, so a neutral scenario shows zero change. Claims ₹2,961 Cr · commission ₹550 Cr · expenses ₹714 Cr · investment income ₹602 Cr.

Method

What the engine assumes

Stated openly, because a simulation whose assumptions are hidden is just a number generator.

Baseline (audited FY25)
  • GWP ₹5,548 Cr · net earned premium ₹3,753 Cr
  • Net incurred claims ₹2,961 Cr · commission ₹550 Cr · expenses ₹714 Cr
  • Underwriting result ≈ −₹471 Cr · investment income ₹598 Cr · PAT ₹93.86 Cr
  • Solvency 1.96× (ASM ₹1,896 Cr / RSM ₹965 Cr), floor 1.5×
  • One combined-ratio point = ₹37.53 Cr
Assumptions you should challenge
  • Price elasticity 0.35 — a rate rise gives back 35% of the gain as lost volume.
  • Rate-to-loss-ratio pass-through 0.15 — premium rises without claims rising proportionally.
  • Expenses are 40% variable with growth; the rest is fixed.
  • Cession sheds claims proportionally and halves the required-capital effect.
  • Tax at 26%, applied only to positive PBT.

Why this replaced the old panel: the earlier decision stack asked a language model for simulation numbers. Those figures had no mechanism behind them and could not be reproduced. This engine is auditable line by line — and it flags its own limits, warning when a lever is pushed past what any published benchmark supports.