InsurTech solutions serve as a modernization of traditional insurance. InsurTech solutions produce more customizable and bite-sized insurance products to cater to every lifestyle. The digitalization of insurance companies reduce paper-based documentation, creating convenience for the consumers or optimizing the pricing of insurance to an accurate premium. The solution allows insurance companies to optimize the price of their insurance through analyzing competitor’s pricing, past prices as well as market trends to determine the optimal premium price to charge. This solution serves as a holistic pricing solution to insurers, computing the price elasticity of the consumer as well as market trends for the insurer. By optimizing the premium on insurance plans, insurance companies are able to minimize losses and maximize profits. Find out more at www.ey.com/sg/fintechhub. For enquiries, contact us via email at fintech@sg.ey.com.

1. Product design and pricing optimization for
insurance products
Case study
Context:
A key challenge in insurance product pricing is
that companies don’t know the relevant pricing
elasticities for their customers and products,
and how much sales would vary when they or
their competitors increase or lower their
prices. Information is needed on how these
elasticities vary by age, sum assured, product
type or bundle, for example. Sales are a key
metric for all insurers; however, without
understanding price elasticities, it is not
possible to truly optimize sales with any real
predictive power, resulting in inefficient pricing
decisions.
This organization was facing these challenges
and sought a solution with their limited working
capital.
Recommended configuration:
• By adopting their automation software, it
allows the market’s landscape and
customer elasticities to be visually
represented for easy analysis.
• At the same time, since it can be easily
applied across different metrics (e.g.,
internal rate of return (IRR)), it is able to
produce targeted analysis and pricing
strategy aligned to the company’s
objectives.
Client impact:
• Improved the efficiency and speed of
workflow through software automation,
executed with very little effort (less than an
hour per month)
• Automated the entire market landscape
analysis and pricing strategy decision for
various metrics
• Easy representation of automated analysis
insight, which includes heat maps and linear
trend models
Contact us
Varun Mittal
EY Global Emerging Markets FinTech
Leader
varun.mittal@sg.ey.com
Price optimization challenges faced by institutions
Regularly updating insights pertaining to respective price elasticities of
their customer segments and product groups
Real-time assessment of how factors such as age, value of sum assured
and product bundle type influence sales, and product demand elasticities
Repricing of products implemented at non-optimal timings, resulting in less
efficient and non-value-adding decisions
Monitoring of changes in sales volume and profile resulting in ambiguity of
product demand being affected by market movement
Sales performance and price optimization solution
Provides a
specific “point-
in-time”
overview of
competitive
positioning
(relative and
absolute price
differences),
compared with
market
percentiles
Provides an
overview of
sales profile for
a specific
period—then
analyses the
change in sales
mix from one
period to the
next
Provides an
output for
analysis, which
forms the basis
for setting
flexible price-
elasticity
assumptions
for better
pricing
optimization
decisions
Analyses the
impact of
changes in new
business sales
and sales mix
profiles on new
business value
and margin
In less than an hour
Benefits of proposed solution
• It will allow
insurance
companies to
have a highly
efficient, high-
quality and
dynamic pricing
process.
• Sales and value
are constantly
tracked,
reflecting how
pricing changes
can bring about
value-added
gains.
• Automation of
competitive
position and
financial
performance
analysis
improves
efficiency.
• It provides
automated
output of optimal
pricing basis for
a given set of
metrics and
constraints
• Movement in competitor
positioning, sales
volumes and sales mix,
new business profiles and
margin is clearly
represented in heat maps
for easy understanding.
• “Efficient frontiers” is
created to help life
insurers make strategic
pricing decisions.
• Performance
improvement of pricing
changes is weighed
against associated
implementation costs. Website: www.ey.com/sg/fintechhub
Email: fintech@sg.ey.com
Sahil Gupta
EY ASEAN FinTech Manager
sahil.gupta@sg.ey.com

2. EY | Assurance | Tax | Transactions | Advisory
About EY
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