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