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Success Story
Competitor pricing benchmarking for customer acquisition in Insurtech sector
Impact
0%
Increase in new customer acquisitions within the first quarter by implementing a competitive pricing model with transparent discounts
0%
Improvement in customer retention rates by addressing pricing concerns and introduced personalized premiums
0%
Additional market share captured in the usage-based insurance segment by aligning offerings with customer expectations and preferences
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Client
Emerging digital insurance platform provider
Products
Usage-based auto insurance, customizable home insurance plans, and bundled coverage options
Industries
Insuretech
target geo
Global
business objective
- The client aimed to evaluate competitors’ pricing strategies for usage-based auto insurance to better align their offerings with customer preferences.
- With increasing competition from established players and evolving customer expectations, the client sought to refine their pricing structure and positioning to drive customer acquisition and retention.
Our solution
- Competitor Pricing Analysis: Benchmarked competitors’ pricing models for usage-based insurance, including factors such as driving behavior, mileage tiers, and dynamic pricing algorithms; Analyzed the pricing elasticity of demand across different customer segments, highlighting opportunities to optimize premiums and discounts.
- Customer Sentiment Mapping: Leveraged social listening tools and expert consultations to assess sentiment around competitors’ pricing transparency, value propositions, and perceived fairness; Identified customer pain points such as hidden fees, insufficient customization, and lack of clarity in premium adjustments.
- Strategic Pricing Insights: Recommended a hybrid pricing strategy that incorporated competitive base rates with dynamic discounts based on driving behavior; Proposed bundling options for auto and home insurance to increase value perception and attract multi-policy customers.
Outcome
- Implemented a competitive pricing model with transparent discounts, resulting in 8% increase in new customer acquisitions within the first quarter.
- Addressed pricing concerns and introduced personalized premiums, leading to a 12% improvement in customer retention rates.
- Captured an additional 7% market share in the usage-based insurance segment by aligning offerings with customer expectations and preferences.
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