Pricing

Pricing Matters

With the rise in popularity of price comparison websites, customers can easily shop around for a better deal. It’s more imperative than ever to ensure effective insurance pricing:

• If the price is too high, it becomes difficult to win or retain business
• If the product is under-priced, this can result in a block of unprofitable customers.
• Recent years have seen low investment returns, leaving little room to offset poor product or market segment performance.

Algorithmic Pricing: A Market Leading New Approach

Using ‘machine learning’ techniques gained from Stanford University, Tony Ward has developed a new framework for building Pricing Models, which extends and improves upon the traditional Generalised Linear Modelling (GLM) approach.

Using Algorithmic Pricing users can build pricing models with greater:

• Speed – model builds that previously took 2 weeks now take 2 days
• Accuracy – benchmark tests show significant performance improvements compared to the traditional GLM approach
• Relevance– we can now test unstructured data (social media feeds, underwriter notes)