Positioning your organization in the pricing race

Every insurer has the potential to significantly improve its pricing strategy and capabilities. The path forward depends on insurers' prerequisites and strategic priorities. A three-step self-assessment can help executives identify the best type of pricing innovation and transformation for their company's current position:

Start with diagnostics. Evaluate the maturity of current pricing capabilities, including pricing and underwriting processes, tools (such as AI and advanced analytics), and organizational structures.
Get insights on market opportunities. Compare the organization's pricing maturity with that of the market environment. Local market interviews with experts and anonymized comparisons can be helpful sources of insight. In addition, insurers should identify potential partners for supplying services such as robo-pricing and AI-based pricing.
Select the pricing level that best suits strategy. Consider the available amount and types of resources, competitiveness of current tariff and risk models, any regulatory restrictions, and level of urgency. The road map for the pricing transformation journey can be developed based on the selected level. The total amount of time required for implementation will vary by pricing level and the products included in the transformation's scope.

COVID-19 has put substantial pressure on the global economy and the insurance industry. The majority of P&C insurance carriers have already launched initiatives aimed at boosting top-line revenues. However, insurers that make a sustained commitment to pricing and underwriting excellence regularly create the most value—and generate a self-perpetuating competitive advantage.

Special Reports /

Digital pricing innovations for a post-COVID-19 transformation

Related Stories

Recommended For You