Life insurance pricing – exploring the next frontier of innovation

Life insurance pricing – exploring the next frontier of innovation

On July 16, Montoux partnered with PwC UK on a webinar entitled ‘Life insurance pricing – exploring the next frontier of innovation.’ The webinar addressed upcoming changes and innovation in life insurance pricing in the UK market.

Speakers included:

  • Shelley Cox, Chief Customer Officer at Montoux
  • Stephen Carlin, UK Director of Customer Success at Montoux
  • Colin Cummings, Partner at PwC UK
  • Ewen Tweedie, Manager at PwC UK

The UK life insurance market is one of the more advanced markets in the world in terms of pricing sophistication and innovation, particularly with regards to repricing frequency and the use of competitive intelligence. This webinar dug into the market trends, technologies, partnerships, and talent that are pushing this industry forward, and the challenges it still needs to address in order to fully optimize the life insurance pricing function.

Key Insights from the webinar included:

  • Disruption occurs when customer appetite meets the right enablers (technology, talent, switching), catalyzed by macro trends in the market
  • Product offerings focusing on wellbeing, rather than illness, particularly initiatives that work to promote and support customer wellbeing, can both increase the number of touch points between customers and insurers and improve customer outcomes
  • Mutually beneficial partnerships between insurers and insurtechs are helping further innovation in the UK life insurance market
  • A variety of technologies are influencing the work of pricing actuaries, including coding solutions, cloud solutions, visualization simulations, robotic Process Automation (RBA)
  • While pricing historically has not received as much attention as other areas of the business, the convergence of data, skills, and technology are driving insights that are putting pricing at the forefront of opportunistic insurers’ minds
  • Incorporating competitor data can provide key insights into positioning in segments of interest
  • Understanding customers reactions to price for sales or lapses is a significant jump in insurer capability, including the implementation of optimization modules
  • Optimization can be a powerful technique to help automate elements of pricing while incorporating business strategy and ultimately improving the decision making process

The five characteristics that will differentiate leaders in the next frontier of pricing include:

  1. Superior intelligence that delivers deeper insights, faster
  2. Granular pricing that is responsive to customer behavior
  3. Speed of insight to execution
  4. Diverse, multi-skilled teams and effective collaboration
  5. Powered by scalable, efficient technology

For more information about Montoux’s decision science platform or about upcoming webinars, please reach out and follow Montoux on LinkedIn for announcements. 

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