Sophisticated demand-based pricing techniques are becoming a vital part of insurers’ pricing capability. Price optimisation tailors the individual customer’s premium based on considerations of current profitability, lifetime value, price elasticity and market competitiveness in a way that meets a company’s immediate and long-term strategic aims.
The underlying principle behind price optimisation is to use practical and applicable customer value measures and price elasticity models to aid pricing decisions. Methods used range from enhanced rating tables to individually optimised prices. All options are supported in our specialist software EMB Optimiser.
Quantium’s price optimisation solutions deploy detailed customer behavioural models to predict price elasticity of demand in the face of various price movement scenarios. For example, we know that less affluent customers are more sensitive to price movements and that this needs to form part of an optimal pricing assessment.
Our approach targets both short and long-term improvements and recognises the real practical business constraints, including the softer constraints, involved with meeting wider strategic aims. Our approach is distinguished by the following:
Most of all, you will have access to some of the world’s leading experts in the area of price optimisation with reputations for delivering practical, leading-edge pricing solutions.
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