Case Study: Insurance Industry achieves 1% GWP uplift with Earnix On-Line Analytical Pricing Solution

On-Line Analytical Pricing Solution

The Insurance Industry, a large South American motor insurer with more than 800,000 customers and a $500 million auto book, needed to improve pricing performance while managing volatile car values, inflation, and strict limits on monthly price changes. Earnix was brought in to support a new on-line analytical pricing solution combining risk modeling and demand-based pricing.

Earnix implemented a flexible rating and pricing platform with geo-risk modeling, retention modeling, scenario analysis, and dynamic price constraints tied to car value. The field test delivered about a 1% uplift in GWP with no change in retention, meeting the insurer’s target under tight constraints and confirming the potential for greater gains if limits are relaxed.