Competition price analysis in non-life insurance
How machine learning and statistical predictive models can help!
by Annick Biver, Michaël Lecuivre and Xavier Maréchal
The competition on the non-life insurance market is as fierce as ever. This situation leads many insurers to develop more and more sophisticated pricing structures trying to implement an efficient segmentation to reach expected profitability. This makes the comparison of an insurer’s prices with its competitors’ prices more difficult and less transparent. Relevant price analysis techniques must therefore be implemented to clearly identify an insurer’s positioning on the market and take the adequate decisions in order to improve its profitability.
In order to respond to such needs, Reacfin’s team developed some methodologies and a tool that enable the user to perform many comparative analyses with the aim to assess and benchmark the prices of other market participants. Machine learning and statistical predictive modelling combined with data visualization techniques allow to build practical indicators and help in taking decisions regarding an insurer’s positioning and strategy.