Case Study

Enhancing pricing models with Aioi Nissay Dowa Europe

Integrate multi-source data with an AI solution that enables the optimisation of new customer and renewal pricing offerings.

 

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2
%

increase in retained customers.

Problem:

The insurance market is one of the most competitive when it comes to price comparisons. In an industry of such small margins, ineffective pricing models can lead to a loss of revenue and an underperforming business.

Speed is also a factor. When someone wants to get a quote for an insurance policy, they're likely to expect many competing quotes returned to them in just a few seconds.

Aioi Nissay Dowa Europe (AND-E) needed a fast, automated, intelligent pricing solution that generated accurate price quotes based on an understanding of how market trends were constantly changing.

Solution:

AND-E and Mind Foundry used the Mind Foundry Platform to develop a unique solution that incorporates millions of data points from multiple disconnected sources. The solution combined historic renewal cases, including the outcome at given price points and true cost to AND-E, with competitor price estimations.

Using a Continous Metalearning capability, the solution automatically and continuously integrates data back into the model to improve performance over time rather than suffer model deterioration. It integrates with AND-E’s internal systems, enabling their analysts to test and deploy new pricing strategies rapidly and reliably.

Results:

The solution enables AND-E to have a deeper, data-driven understanding of a potential customer’s risk profile whilst using this insight to simultaneously predict the market price.

The solution enables better risk estimation for renewal quotes, which has led AND-E to retain 1-2% more of their best customers. Renewing customers is far better for AND-E than new business as they come with a clear picture of risk.
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"We saw greater engagement and collaboration between pricing experts and data scientists, collaborating throughout the model deployment and use. As a business, it was another step towards the responsible use of AI with transparency, accountability, and human oversight."

Jon Wilshire
Chief Underwriting Officer

Contact us to learn more...

 

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