Price Optimization Case Study

Increase in-force protection product embedded value by 12%

Our experience in income protection and ability to optimize in-force portfolios with complex product bundles enabled us to determine a pricing strategy that balanced customer outcomes with achieving sustainable portfolio performance.

The Problem

How can we address income protection portfolio profitability challenges and maximize customer retention?

Our customer faced profitability challenges in a certain portion of their in-force portfolio.They needed to improve portfolio profitability without adversely affecting lapse rates.

Summary of What We Did

Montoux’s Decision Science Platform delivered the following outcomes:

• Built price-to-lapse elasticity models across product bundles
• Deployed a flexible pricing model to enable faster, more responsive pricing capability
• Integrated price elasticities and competitor prices in the pricing process
• Optimized in-force prices across product bundles to achieve profitability objectives

Benefits to Our Customer

$25m (12%) uplift in portfolio embedded value

Minimized customer lapses while addressing profitability issues

Addressed portfolio cross subsidization challenges

Ensured claims ratios remain within target levels

Get in Touch: To learn more please contact hello@montoux.com

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CUSTOMER LIFETIME 
VALUE

Improve customer lifetime value by $6m per annum.

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WELLNESS INTERVENTION MANAGEMENT

Reduce LTC claims costs and reserves by 5 percent, improve customer wellness outcomes.

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EXPERIENCE STUDY

Automating the experience study workflow; completed in near-real-time based on monthly data feeds.

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DISTRIBUTION & PRODUCT 
ANALYTICS

Identified a pathway to increase sales by over 30 percent.

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PRICE OPTIMIZATION

Increase in-force protection product Embedded Value by 12 percent.

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Get in touch with us today hello@montoux.com

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