The insurance industry is changing its approach with regard to product pricing. Price optimization is considered a major differentiator by many insurance players.
Zurich, Switzerland – March 01, 2010 – In a new report, Price Optimization in Insurance: A Revolution in Progress, Celent defines price optimization and explains how the insurance industry is currently changing the way product prices are determined.
“While the elements and parameters of new pricing techniques might seem obvious and relatively easy to understand for insurers, some aspects related to the implementation of a price optimization program need particular attention,” says Nicolas Michellod, Senior Analyst with Celent�s Insurance group and author of the report. “Insurers should avoid the temptation to view price optimization as a technology exercise and create a multifaceted IT strategy that provides a coordinating vision.”
This report demonstrates with a few concrete examples that price optimization can help insurers identify untapped business potential and increase their sales performance while generating higher underwriting profit. The report also provides Celent�s thoughts about the impact of price optimization on insurer business processes, the ease of IT undertaking, and the level of IT investment needed as well as the maturity of the technology available on the market.
This 26-page report contains six figures and two tables.
A table of contents for this report is available online.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC]. http://www.celent.com.