About this brief

"Insurers must effectively adapt to new technological, market, and consumer complexities with better, more dynamic pricing if they want to maintain a competitive advantage in the insurance industry." Report: "The Growing Importance of Pricing 2018," The Boston Consulting Group

• Market transparency brought about by the digital economy.
  The increasing appearance of online insurance aggregators is driving the market to a state or permanent price comparison.
• Technology disruptors enabling new pricing models.
  External data vendors, the Internet of Things, and other data enrichment services are giving insurance companies the possibility to create new innovative pricing models. These include dynamic pricing, better risk estimates, and the proper discount according to willingness to pay, propensity to buy, or probability of churn.
• More sophisticated consumers.
  Consumers are now open to new value propositions based on new variables (mobility, limited coverage, etc.), requiring dynamic pricing structures.