Insurance markets are rearly perfectly price-rational and even if they on an average are, there are most likely some imperfect sub-segements and sales situations that can be exploited in order to create extra profit. Changes in competitor prices, distribution power, advertising campaigns etc. create an ever changing competitive situation making this extra profit hard to get. Is it possible to get this extra profit? Traditional actuarial rating methods (GLM etc.) do not look into the competitiveness of the markets, and will not exploit this potential.

PriceBuilder is a sophisticated statistical solution that sits alongside your existing rating engine and uses the results of historical customer purchases and price elasticity algorithms to optimise the price presented to the customer.

Agility

PriceBuilder can hold and manage complete price elasticity models for all segments and points of contacts, exploiting the sub-segments and sales situations where extra profit can be made. Optimisation is performed in real time over a value function defining the insurer’s strategic priorities.

Intelligence

PriceBuilder includes an automated recalibration functionality where the latest conversion rate information is analysed, market changes are identified and prices are automatically updated keeping the solution up to date on changing competitive situations.