“The reality is that pricing today is about so much more than efficient frontiers and optimal price points. The decisions carry much more significance, and must be taken in a much wider context.”
Nick lays out a set of principles he and his team use to guide pricing decisions, and that in turn drive the technology decisions needed to implement them:
Find a way to balance the long and short term, the strategic and tactical
Ensure that “pure” data and analytics and predictions are blended with market insight, context, and customer feedback
Pay close attention to prioritization – there will always be more seemingly-attractive things to look at than there will be time to analyze and implement them
Never forget that the ultimate goal is to be the custodian of fair value, customer data, and data ethics
Post Office Insurance leverages Earnix for retail pricing in its travel and home businesses, and to help make sure these principles and regulatory adherence are both adhered to smoothly.
Post Office Insurance also leans on Nick’s decade-plus of experience in leadership roles at major UK insurance businesses, including Hastings Direct and BGL, in various product, commercial and partnership roles. As a member of the Executive Committee of Post Office Insurance, Nick runs the General Insurance portfolio covering Home, Motor and Pet products and has responsibility for Pricing & Data Analytics across the wider business.
These principles certainly make good common sense, and hear in more detail how Nick and his team put them to use on a daily basis by watching the full session.