The client: Corporate insurance firm
Area of engagement: Price Point Optimization
Leading players in the corporate insurance industry are increasingly focusing on improving top-line sales while bolstering their bottom-line profitability. However, there are numerous challenges standing in the way of the corporate insurance firms. Notably, not all of these challenges are within the industry’s control such as catastrophe losses and rising interest rates. But what is well within their authority is how effectively the insurers adapt to the changing circumstances both operationally and strategically, to differentiate themselves in the market.
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There is a rise in customer expectations and disruptions that are bringing about several changes to the overall market scenario. Here are a few factors that are expected to bring about significant transformations in the corporate insurance sector over the next few years:
- Technological advancements: Technology permeates every aspect of the insurance process, from online purchases to filing claims and communicating with insureds, to the products and services insurers provide. With rapid technological advancements and improvements in mobile technology, it has become easier for insurers and their insureds to communicate; thus, bringing significant changes to customer service dynamics. The use of technology also helps insurers in streamlining their processes and offer seamless services to its customers. Also, through the use of IoT and other features like connected homes, connected phones, and connected devices, it becomes evident that there is a plethora of information which should be harnessed, sorted, and used by insurers. This helps in providing key metrics and demographics, which assists in the development of new products and services.
- Data security: Since there is no limit to the extent of data that can be captured via social media, telematics, the internet, and other such sources, the corporate insurance firms face significant challenges in protecting the captured data. However, the major concern is that the use of the collected data could infringe on civil liberties and personal privacy. Moreover, thought the data offers insights on improving customer service levels, the main advantage lies in the insurance firm’s ability to use the information and develop products and services that suit the needs of its customers.
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The Business Challenge
The client, a leading player in the corporate insurance sector with an international presence, wanted to gain a holistic view of customer decisions and determine new strategies that would help them improve their decision-making capability. The client was looking at developing enhanced pricing strategies to sustain themselves in the growing competition. The organization’s primary concern was to distinguish different customer needs and profiles and formulate sophisticated approaches that recognize the need for pricing decisions. Moreover, the client also wanted to improve profitability through better pricing decisions and set the most appropriate rate for each customer to maximize revenue within constraints.
The Solution and the Business Impact
The price optimization solutions offered by the experts at Quantzig helped the corporate insurance firm in reducing the overall prices and restore the profile of its customers. Our solutions also enabled them to introduce differential pricing based on customer risks. With the help of our price optimization solutions, the client was able to develop an overall pricing strategy, which helped them in generating a higher level of profit within its business constraints. Moreover, the price optimization solutions offered also helped the corporate insurance firm in assessing the trade-off between competing objectives and implement individual customer decisions to meet the business goals.
To know more about how our price point optimization helped the corporate insurance company, request a Free platform demo.
Price Optimization Solution Insights
The key to a successful pricing strategy lies in predicting the effect of various price approaches on the overall profit as well as on each of the trade-off dimensions. Our price optimization solutions help you keep track of the price-performance and recommend a price, which is most likely to improve your overall business performance. Moreover, our solutions also benefited the client in developing promotional strategies by forecasting the demand for the services rendered.