The private car insurance market is heavily driven by price. The brands that achieve the best cut-through are increasingly the price aggregators. So how do insurance brands make sure they get the best market share of profitable business? It’s a tricky balancing act between insurance risk, competitive pricing and margin – undercutting the competition isn’t always possible.
Jaywing has worked with Swinton Insurance across a variety of strategic and tactical analytical projects spanning the entire customer journey from acquisition to renewal. So they asked how we could help.
Through our predictive models and optimisation techniques, Swinton is able to understand the impact that different prices have on key metrics such as the propensity to convert, the likelihood to pay monthly and the probability of purchasing add-on products for each potential new customer or renewal. And offer the price that will generate the best possible outcome as well as driving the best income across all policies. What’s more, our optimisation techniques enable Swinton to vary pricing strategy to optimise income subject to any constraints in the business such as call centre capacity and weekly conversion targets.
Both of which mean Swinton Insurance can generate more granular and profitable strategies. Having achieved some impressive results, they’ve made the case for applying more sophisticated pricing strategies, including price optimisation, to other areas of its business.
“Jaywing brings an acute understanding of some complex maths to complement our internal team, enabling the use of pricing optimisation techniques that have had a fantastic effect on our business.”
Thomas Bradley, Head of Pricing at Swinton