Price Insurance Smarter and Faster
Pricing is an ongoing source of anxiety for insurance organizations because pricing decisions have a direct impact on sales volumes, revenue and profitability. Over the years, a variety of strategies have been in place to establish prices for products, depending on custom, the nature of the insurance industry and the degree of competitiveness in the market. Recently, the process has become more complex for subscription- and usage-based approaches.
Insurance organizations have found success in taking a data-driven approach to the process, as software has put modern microeconomic theory to practical use by enabling companies to optimize revenues and margin through more intelligent pricing. It becomes more important to use software to manage pricing intelligently and with greater agility and increased revenue performance. Ventana Research asserts that by 2025, one-quarter of insurance organizations will replace applications with more intelligent ones that focus on optimizing sales performance to guide sales organizations for maximum outcomes. Despite the benefits of digitizing pricing, insurance companies have been slow to adopt software dedicated to this purpose. A primary reason is that software for managing pricing once required major effort to evaluate, procure and deploy. However, current offerings can accelerate time-to-value and reduce risk by simplifying implementation and enabling a step-by-step approach to adoption.