Profitability for an insurance company can be achieved by maximizing the total lifetime value of its customer base while taking into account the aggregated risks. Price is the basis for most customers in choosing their insurance company. Hence, price becomes the most powerful tool to determine an insurer’s customer base and profitability.
Lifetime value is determined by both the value and loyalty of customers, which makes pricing for bundled products more challenging, since customers buying multiple products are more likely to stay longer with their insurance company.
- Identifies joint acceptance probability of different combinations at different bundled prices using historical data and customer segments
- Suggests the right price discount amount on cross-sell offers
- Generates prices by taking into account the specific price elasticities of each segment
- Enables you to quickly put together marketing campaigns
- Adjusts the prices to balance the aggregated risk at different product categories and geographical regions
Please contact us for a tailored solution for your business