In November 2019, Scottish Widows, a subsidiary of Lloyds Banking Group, became the first UK life insurer to transform its pricing process with Montoux’s pricing optimization software. Scottish Widows is one of the UK’s oldest and most well-known financial services organizations, but this partnership is a part of a broader initiative to become even more innovative and efficient. This begins with the right software tool, and the right environment to run it.
Most life insurers’ pricing process is an intensely manual, inflexible process, requiring a significant amount of time and resources by the actuarial and pricing teams in order to complete a pricing exercise. Because of this, pricing exercises are rarely run as frequently as they should be, don’t allow for market testing, and don’t draw a clear link between pricing and performance.
Montoux’s pricing transformation software integrates with life insurers’ existing systems in order to optimize their pricing, ensuring they get the maximum value from the process.
Scottish Widows is optimizing its premium rates system and seeking to become more competitive with its price setting. Montoux’s capabilities enabled this as well as offered in-depth insights into which prices and products were performing optimally and which ones weren’t. In the words of Scottish Widows’ Product Owner of Innovation & Analytics, David McLeay, “It’s practical innovation that delivers genuine ROI, allowing us to be more responsive to the market, and ultimately provide better products and services for consumers, for the right price at the right time.”
Montoux’s software is a unique and compelling combination of actuarial and data science, giving life insurers the tools they need to get in-depth, clear data analytics on an ongoing basis. This helps drive business performance, optimize processes like pricing and retention, and empowers evidence-based decision making.
When Montoux’s implements its pricing software with Scottish Widows, Amazon Web Services (AWS) is the environment through which it powers this transformation. Known for its cutting edge cloud technology and enabling capabilities, AWS was an obvious choice for Montoux because its structure delivers simplicity, reliability, and efficiency, enabling Montoux to maximize its performance and provide its industry leading software for global insurance customers.