Case Study: Ohio Mutual Insurance Group achieves precise rate-change forecasting and safer product expansion with SAS

Ohio Mutual Insurance Group explores price elasticity, broadens insurance lines with less risk via SAS®

Ohio Mutual Insurance Group, a regional insurer writing about $190 million in annual premiums across homeowners, auto and farm lines in seven states, needed better visibility into how rate changes would affect customer renewals. Because price increases often trigger policy shopping, the company wanted to forecast the impact of proposed rate changes at both agent and policyholder levels and understand price elasticity before rolling out new products.

Using SAS Business Intelligence for Midsize Business and SAS Enterprise Guide, a single analyst builds policy-level forecasts in about a week and runs them in three to four hours, with no IT involvement. The models let Ohio Mutual estimate “walkaway” prices, set rates for new deductible-based homeowners options, test discounts for commercial lines, notify agents in advance, and expand product offerings with lower risk — all affordably and with analytical capability comparable to much larger insurers.

Ohio Mutual Insurance Group

Dave Grove

Vice President, Product Management