A leading North American insurance company
The client realized that pricing was not well aligned with customer risk levels and hoped that realigning would create a more resilient product line. The company was concerned, however, that a wholesale change in its pricing structure might lead to unexpected reactions from the customer base.
APT Test & Learn® compared Option A and Option B pricing and helped the insurer decide to roll out Option B. The system-wide profit difference between the two pricing strategies for the insurer was more than $100 million per year.