Interviewer view · keep this screen to yourself

A Gulf motor insurer back to underwriting profit

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A motor insurer in the UAE is losing money. How can it return to profit?

Format note: Candidate-led: you ask for the numbers and drive; the interviewer answers what you ask.

2. Answers to clarifying questions

Give these answers only if the candidate asks. If they ask something not listed, give a sensible answer or say it does not matter here.

If asked: What are premiums, claims, and expenses?
Answer: Premiums AED 500 million a year; claims AED 375 million; expenses AED 150 million.
If asked: Does the insurer earn investment income?
Answer: About AED 20 million a year.
If asked: Where do the claims problems come from?
Answer: Young drivers and suspected fraudulent repair claims.

3. The hypothesis a strong candidate states

Listen for an early, testable guess like this one. It does not need to match word for word.

Motor insurance margins are thin, so my hypothesis is that the combined ratio is above 100 percent and that both claims and expenses need work.

4. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Combined ratio = loss ratio + expense ratioThis comes from profit = premiums minus claims minus expenses plus investment income, so the combined ratio must fall below 100 percent.
- Key: Loss ratio (claims / premiums)
- Expense ratio (expenses / premiums)
- Investment income
- Levers: pricing by risk, fraud control, digital sales

5. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Loss ratio
What a strong candidate does: Candidate: "Claims of 375 on premiums of 500 is:"
Loss ratio (%): 375 ÷ 500 × 100 = 75
Step 2: Expense ratio
What a strong candidate does: Expenses of 150 on premiums of 500.
Expense ratio (%): 150 ÷ 500 × 100 = 30
Step 3: Combined ratio
What a strong candidate does: Candidate: "Above 100 percent, so it loses money on insurance itself."
Combined ratio (%): (375 + 150) ÷ 500 × 100 = 105
Step 4: Underwriting result
What a strong candidate does: Premiums minus claims minus expenses.
Underwriting result (AED m): 500 - 375 - 150 = -25
Step 5: Total result
What a strong candidate does: Adding AED 20 million of investment income still leaves a loss.
Total result (AED m): 500 - 375 - 150 + 20 = -5
Step 6: After the fixes
What a strong candidate does: Interviewer: "Fraud controls could cut claims by 4 percent, and digital sales could bring expenses to 26 percent of premiums." Candidate: "Then the combined ratio becomes:"
Combined ratio after fixes (%): (375 × 0.96 + 500 × 0.26) ÷ 500 × 100 = 98

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The insurer can return to underwriting profit by working on both claims and expenses. First, its combined ratio is 105 percent, so it loses AED 25 million on insurance itself, and investment income of AED 20 million does not cover that. Second, fraud controls on repair claims (about 4 percent of claims) and moving sales to digital channels (expenses to 26 percent of premiums) bring the combined ratio to about 98 percent. Third, pricing by risk, especially higher premiums for young drivers, would improve the loss ratio further. Start with fraud controls, which are quickest, and review young-driver pricing within the rules on motor insurance pricing.

Risks a strong answer names: Higher prices for young drivers may lose volume to competitors; Fraud controls may slow honest claims and hurt customer satisfaction.

Next steps: Set up a fraud review for repair claims above a set amount; Analyze loss ratio by driver age and car type.

Strong versus weak

A strong answer

Asked for premiums, claims, and expenses, calculated the combined ratio, and sized fixes on both claims and expenses.

A weak answer

Proposed selling more policies, which grows the underwriting loss while the combined ratio is above 100 percent.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.