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Capgemini_research-and-insights_Next-stop-for-dynamic-pricing--PandC-insurance-carriers

Next stop for dynamic pricing: P&C insurance carriers

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Insurers can now harness the power of massive quantities of customer data and cloud-scale analytics to offer personalized rates in real-time profitably

Many industries such as airlines, gyms, and hotels currently leverage artificial intelligence (AI) and digital technology advancements to offer dynamic pricing and increase profitability. However, the insurance industry has been slow to transform pricing capabilities mainly due to insufficient information about product demand, uncertainty about pricing changes on profitability, and lack of a scalable pricing platform. The need for dynamic pricing will only become more pronounced as carriers compete to leverage data and personalize coverages to win market share, while ensuring long-term profitability.

Recent cloud data migrations have fundamentally shifted insurance pricing strategies toward the adoption of dynamic pricing by enabling the integration of large volumes of third-party and internal data. This has allowed insurers to incorporate data related to risky behaviors into dynamic pricing models and monitor key performance indicators (KPIs) across geographies and lines of business. Harnessing all this data in a scalable platform and making it readily available is critical to ensuring the long-term success of a dynamic pricing strategy.

Read our latest POV on dynamic pricing for P&C insurance carriers to learn more about:

  • The powerful benefits of implementing a modern pricing platform that incorporates dynamic pricing capabilities
  • The role that cloud migration plays in connecting data and enabling advanced technologies to improve customer segmentation and drive faster go-to-market strategies
  • Capgemini’s three-phase implementation program that quickly and effectively modernizes insurance carrier pricing strategies