Case Study: Leading North American Insurance Company achieves $100M+ annual profit improvement with Applied Predictive Technologies' Test & Learn® Management System

Leading North American Insurance Company - Customer Case Study

A leading North American property & casualty insurer found its pricing misaligned with customer risk: low-risk customers were subsidizing higher-risk ones. Concerned that a wholesale repricing could trigger adverse customer reactions, the company designed and tested two alternatives — an aggressive price change (Option A) and a more moderate change (Option B) — to determine the best approach.

Using APT’s Test & Learn® platform and scientifically matched control groups, the insurer measured sales and losses under each option. Option A caused significant revenue loss as customers facing large increases exited, while Option B retained customers, lifted revenues, left losses unchanged, and improved overall profitability. The difference between strategies exceeded $100 million per year, and the company implemented Option B.