OnDemand WTP Pricing Research

Part One: How can I use AI to improve my company’s pricing? | Artificial.

Modernising product pricing
Take pricing. Traditional insurance pricing models are largely simplistic – a pricing matrix system, for example, registers the price of a consumer product and alters the premium accordingly from a couple of variables, categorising the risk in a simple matrix.

These models can sometimes lead to uncontrollably high exposure and loss ratios, as there is no guarantee that the simple pricing formula is indeed linked to the actual risk (i.e. the level of claim).

The lack of additional data input, as well as a strict set of constraints, means that insurers miss out on a level of accuracy that could potentially be achieved with technological assistance. In order to be more accurate, the pricing should theoretically take into account more variables. Indeed, the number of internal and third party data sources available is increasing all the time.

Read complete article here:

Blog – Artificial -Part One: How can I use AI to improve my company’s pricing?.

Post a Comment

WP-SpamFree by Pole Position Marketing