Akur8 DEMAND x IMPACT ANALYSIS
Overview
Akur8’s DEMAND module builds on the technical premium computation and adds the ability to model customers’ conversion behaviour and price sensitivity, using parameters such as customers’ profile or competitors’ prices. Akur8’s DEMAND module goes one step further in the pricing sophistication journey, with market-based insights modeling capabilities.
A major add-on to Akur8’s Demand module is the Impact Analysis brick. Through Akur8’s Impact Analysis, pricing and business teams can run multiple scenarios to assess first-hand the effects of pricing strategy choices. The solution offers them a clear visual trade off between top line and bottom line impacts - that is to say between the increase in the number of subscriptions, and the loss ratio reduction.
Akur8’s Demand AND Impact Analysis module provides insurers with a powerful decision-making tool to assess the impact of their pricing strategy.
Go one step further along the pricing sophistication journey by answering the question “How likely is this prospect to buy my insurance product if I offer them this price?” Improve your demand analysis by modeling propensity to buy and price elasticity separately, generating insightful and actionable models that can also leverage external competitor data and geographical analysis.
Key Features
One of the core strengths of the DEMAND is to dissociate conversion rate from price sensitivity modeling for a given customer profile. This way, price sensitivity is rigorously isolated from any customers’ behaviours effects that would biaise its calculation.
Key Benefits
Akur8 DEMAND x IMPACT ANALYSIS entails sizeable benefits for insurers, of which:
- Faster modeling allowing to reflect changes in customers behaviours quickly, especially in these times, for models to remain accurate and up-to-date
- Higher model performance
- Much safer and more robust process through the dissociation of conversion rate from price sensitivity modeling
- Transparency
- Easy visualization of the impact of pricing scenarios on top line and loss ratio
