Price Optimization For New Business Profit and Growth

Non-life companies want to maximize profit ts from new business. Price optimization can make the diff erence. To write more new business, property & casualty companies need to defi ne the type of customer they want to attract and then understand how pricesensitive these customers are to their products. By effectively analyzing price sensitivity and expected sales volumes at varying profi t levels, companies can increase new business conversion rates — given target levels of profi tability — to arrive at an optimal new business pricing strategy.