This playbook describes the challenges caused by existing, “status quo” pricing models while also highlighting how a new analytics-driven approach to risk-based pricing using machine learning can help auto lenders achieve their most critical goals.

Insurance carriers today must become more flexible and agile to keep pace in a rapidly changing world. In this brochure, we discuss the main challenges that insurers are facing in their pricing and rating operations and the answer for implementing pricing and rating strategies at the speed of the market.

It’s been nearly a year since the FCA’s Pricing Reform went into effect. Yet many insurers still have questions related to its requirements, especially when it comes to developing the right pricing and rating strategies to comply and compete.

Banks, credit unions, and automotive captive finance companies—any organization providing auto lending—stand to gain a lot from new, smarter pricing strategies and approaches. By improving pricing approaches with modern technology, these organizations can grow their customer bases, improve overall profitability, and deploy highly tailored, personalized offers that create meaningful customer experiences.

The impact on claims from diverse forces as inflation, rising interest rates, altered driving patterns, cyber threats, and extreme weather events, to name just a few, create scenarios with upward pressure on premiums and highly uncertain outcomes.

With shrinking profit margins, auto manufacturers and lenders are embracing complementary products and services as never before. This has forced their thinking to evolve away from closed, legacy technology architectures and standalone software applications to a strategy that accommodates flexible connections with those partners.