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Price optimization will become an industry-standard practice, according to EMB, a global actuarial consulting firm. This relatively new concept in ratemaking establishes a framework to incorporate loss cost, customer behavior and corporate objectives when determining insurance rates. The advancement of price optimization will bring the actuarial and production sides of the business together to create integrated pricing strategies that can lead to better financial performance and growth.

Price optimization is high on the C-level agenda, and the attention is expected to increase as early adaptors overcome perceived barriers. Moreover, with the right level of buy-in throughout an organization, insurers of any size can benefit from these techniques. Large and mid-size insurers, whose market share can be threatened by more nimble competitors, have the most to lose if they do not act quickly and adopt price optimization strategies. Smaller insurers, on the other hand, have a lot to gain with early adoption.

Due to the importance of this topic, EMB is offering a free Webinar on price optimization on September 23, 2008 at 11:00am ET. Please find additional details at the following Website: http://embamerica.com/events/agenda.php.

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“It is human nature to be afraid of change, but in this instance, fear is something insurers cannot afford if it delays the roll out of price optimization,” said Robin Harbage, Senior Consultant, EMB America.

“Price optimization is in a very similar position in terms of acceptance and deployment as predictive modeling was six years ago – and now you’d be hard-pressed to find someone who doesn’t agree that modeling has changed things for the better. Those insurers who are slower to adopt and struggle with understanding the intersection of loss cost and behavior may feel the pinch in their bottom-line figures.”

About the company

EMB is the world’s leading business and actuarial consultancy firm specializing in property and casualty (P&C) insurance. We provide award-winning, innovative software and consulting services designed to help our clients optimize their business performance, providing sustainable improvement through knowledge transfer.

At EMB, we support both large and small insurers and reinsurers. EMB in North America works with 19 of the top 25 U.S. P&C companies, while the global organization supports 23 of the world’s top 25 P&C companies. With offices across the U.S. and around the globe, we support firms both locally and globally.

Contact details

Louisa Harbage
EMB America
+1 858-793-1425
louisa.harbage@embamerica.com

Dan Gaffney
LEWIS PR
+1 617-226-8840
embus@lewispr.com

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EMB Urges Insurers to Prepare for Wider Adoption of Price Optimization

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