Challenge:

• Insurer with strong record on intermediated products, keen to improve performance in the direct-to-consumer market
• Pricing team operating without retail mindset and processes, focus on mathematical rigor in models over understanding competitive context and driving commercial value.
• Imminent regulatory intervention into pricing practices, requiring industry-wide changes to insurer ‘price walking’ strategies

Outcomes:

• 45 recommendations sequenced to deliver +8.9% incremental margin as % of sales
• New elasticity methodology, enabling more accurate predictions and better pricing decisions
• Tailored pricing strategy and support on how to respond to market uncertainty when the legislation is enacted
• Operating model developed to produce best-in-class daily trading function with an agile pricing team, clear governance procedures and detailed process maps