Capture demand and price sensitivity to adjust your pricing strategy
Model propensity to buy and price elasticity separately
- Estimate a customer’s likelihood of purchasing at the current price using a static model
- Measure how price changes affect conversion probability using a dynamic model
Leverage external competitor data
- Enrich your price sensitivity analysis with external competitor quote data
- Combine customer profiles, offered prices and competitor insights for in-depth analysis
Include geographic analysis
- Unlock geographic analysis for conversion rate and elasticity modeling
- Make better portfolio decisions by capturing local and global effects
They implemented the solution
“Akur8 is a best-in-class pricing solution. The results we observed during the pilot phase are speaking for themselves, with dramatic reduction in modeling time and more predictive power of the models. This will both accelerate our time-to-market and improve our pricing accuracy, bringing substantial value to our partners and the end-customer, in a time that requires ever more reactivity and transparency.”
“Our team really values the speed of model creation and iteration, transparency and ease of reporting that Akur8’s Core Platform solution provides. Being able to review the indicated vs. predicted and then make a selection is something in the current pricing process that Akur8 helps make a lot more efficient. We also love that if a member of our team ever runs into a roadblock, Akur8’s live support is always there to help us resolve any issues that arise.”
Frequently Asked Questions about Insurance Demand Modeling with Akur8
What is Akur8 Demand, and how does it support demand modeling in insurance?
Akur8 Demand is a pricing module that allows you to leverage behavioral and competitor data to model propensity to buy and price elasticity. It is a part of Akur8’s fully integrated pricing solution designed with actuaries in mind to take the pricing capabilities to the next level.
How does an insurance conversion model improve your pricing decisions?
Akur8 enables you to analyse how likely it is for your prospect to buy with current prices and how changing prices can impact conversion rates. With Akur8 Demand you can leverage external competitor data to get in-depth analysis about market price dynamics and include geographic demand modeling to make better decisions.
How does Akur8 Demand's customer retention models for insurance help reduce churn at renewal?
Akur8 Demand's static models estimate each customer's probability to renew at current prices, while its dynamic models show how that probability shifts when prices change. By measuring elasticity at the segment level, you can fine-tune renewal pricing to reduce churn and retain your most at-risk policyholders.
How does Akur8 leverage external competitor data?
Akur8 can ingest competitor quote data to enrich your price sensitivity analysis, for example, by seeing the impact competitor prices have on your conversion rates. This enables in-depth analysis of market price dynamics.
Do we need to have competitor quote data to use Akur8?
No, you can start with your own internal data for new quotes or renewal datasets. However, adding competitor quote data significantly improves your understanding of market positioning.
How does geographic elasticity modeling help portfolio management?
By understanding the locations where customers are more or less price sensitive, you can refine prices locally and adjust underwriting by region. It allows you to better manage growth and profitability across your portfolio globally and locally.
