Competitive Pricing Intelligence Mission Portfolio: Regional Insurance Pricing Dynamics
A regional insurance organization wanted to understand why it seemed to be losing business to an upstart competitor. Its salespeople repeatedly told its product management group that the competitor’s prices were 40-50 percent lower, but management resisted the calls to drop that low without more information. A reduction of that magnitude was unsustainable.
Aurora GPS worked with a broad group of stakeholders both inside and outside the insurance carrier’s organization to get a better sense of what was happening. As it turned out, the rival was not offering a key aspect of coverage. That omission allowed them to considerably drop their price. More importantly, however, was the insight that customers were not interested in the broader offering the client provided – that is why they flocked to the competitor when the option became available.
This insight allowed the insurance carrier to begin offering a comparable product, quickly stemming the tide of lost market share.