Dynamic pricing with AI syncs insurers with market realities

Pricing automation improves speed and flexibility

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The cost to consumers of switching insurance products and carriers has declined, with a predictable effect of decreasing customer loyalty. Insurers can address this challenge with artificial intelligence (AI)-based dynamic pricing.

AI-based pricing models deliver significant reductions in the time required to introduce new pricing frameworks. Time-to-market can be condensed from months to weeks.

New governance models are required. AI builds speed, flexibility, and reduces the risk of mispricing, but new pricing and calculation models require a next-generation approval process.

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Meet the authors

Koos Quak

Connect with author:

, GBS Insurance Leader NL, IBM Global Business Services

Gert-Jan van Zuijlen

Connect with author:

, Financial Management Consultant, Global Business Services

Christian Bieck, Global Insurance Leader, IBM Institute for Business Value

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