Insurance pricing strategies

THE CHALLENGE

Insurance is a tough market where pricing is key. Nevertheless, this company needed help to better understand the relationship between price and volume, especially as their customer profitability varied significantly.

OUR SOLUTION

First, we ran a detailed analysis to understand price elasticities at acquisition and renewal, how it varied between customers and why. Then we produced a model showing customer profitability by channel, product holding and customer characteristic.

RESULTS

Improved margin performance at renewal and volume performance at acquisition. Margin impact equivalent to 7% of EBITDA.