Insurance pricing strategies

THE CHALLENGE

Major UK travel insurer, specialising in older travellers and existing medical conditions, and operating an internal ‘comparison website’ including several partner insurers. Review pricing function and benchmark pricing capabilities following acquisition and recommend plans for an improved capability and actions to support future growth.

OUR SOLUTION

Initial analysis provided a better understanding of customer and brand price elasticities and associated impact of price changes on margin.
Identification of initial pricing recommendations to take advantage of immediate opportunities relating to price levels, rankings, and panel composition.
Update the pricing engine to facilitate immediate and longer-term changes.
Development of plan, scheduling activities supporting sustainable development of the pricing function.

RESULTS

Immediate margin improvements equivalent to £0.6m annually, with estimated annual benefits of around £2m over the course of two years.