IBM PureSystems Centre

Extending the value of IBM PureSystems

Earnix Insurance Optimizer

IBM PureApplication System
IBM PureData System
IBM PureFlex System
Provided by:Earnix
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Demand-driven price optimization platform for the property and casualty insurance sector
  • - Business Value

    Pattern Overview

    Earnix Optimizer is a customer-centric demand-driven optimisation platform, based on IBM WebSphere and DB2. Earnix Optimizer enables smooth integration of Price and Revenue Optimization (PRO) into various departments and business workflows.

    Earnix Optimizer harnesses each individual customer's profitability potential in favor of realizing the insurance company's overall underwriting performance goals.

    Using Earnix Optimizer for insurance price optimization, insurers can set an optimal margin for an insurance product by estimating consumer demand. Margins can be optimized at individual policy level, based on individual customer demand data. Alternatively, a the rating factors in a rating structure can be optimized directly where regulatory environment does not allow individual pricing (e.g. USA)

    Earnix's software allows insurers and intermediaries to apply various constraints on margin optimization, such as portfolio size, retention rates, profitability and lifetime customer value.

    Earnix Optimizer helps manage the entire demand-based pricing optimization process starting from Loss cost modeling, price-sensitivity test design and all the way through to price exeuction and real time price optimization.

    Business Case

    • Increase profitability by 2-3% of revenue, or 9-30% of exiting profit.
    • Predict and control customer retention
    • Directly measurable ROI.
    • Scientifically proven results.
    • Low risk implementation process
    • Success based, Revenue sharing compensation program available
    • Provide common ground for objective discussion of pricing strategy

    Business Problem

    There are cases in which consumers may be willing to pay a higher price than what insurers are charging. Conversely, there are many other cases where insurers ask more than what customers are willing to pay.

    Millions can hide in the gaps between insurance supply and demand, in lost annual profit or lost customers.

    Today's insurers have little tools and methodology to systematically optimize this gap.

  • -Technical Details

    The EO enables all Price Optimization activities: data preparation and analysis, statistical model-building for behavioral models, building or copying into Earnix profitability models and cost information, running different pricing scenarios both none- optimized what-ifs and optimized pricing scenarios, analyzing and comparing the pricing scenarios and choosing the most suitable one.

    Capabilities include:

    • Individual and Factor Optimization
    • Complex individual and segment level constraints, multiple portfolio level constraints
    • Life Time Value Optimization (patented)
    • Multi-product optimization – optimizing current product prices considering how future purchases of other products will be influenced.

  • - More Information

    Provider Information

    Name: Barak Melnik


    Phone: +972-3-7538292

PureSystems patterns are part of a broad portfolio of PureSystems solutions for business, cloud, and infrastructure applications.

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