For years, U.S. auto insurers have dreamed of total flexibility in setting prices. Customers who appear sensitive to price get a lower offering, customers who don't seem to care as much pay more. Prices are adjusted for the time of day. Customers who offer the prospect of a long relationship and/or multiproduct sales are lured with the best price the insurer can offer. Some of these dreams can come true in other parts of the world. But U.S. insurers know if they tried such things, regulators would make their lives a nightmare. But does that mean insurers can't consider the customer's characteristics at all when pricing auto insurance? The answer, we have learned, is more nuanced than we thought. Thanks to innovative thinking, some insurers and actuaries are developing tools to utilize a broader range of customer characteristics into the insurance pricing process. This session looks at Deepak Ramanathan of Fractal Analytics, working closely with Ed Combs of Combs Consulting, has been working closely with insurers to find new ways to make use of analysis of consumer behavior within the context of the U.S. insurance market.
11+ years experience in consulting & analytics to define, design and implement analytics road maps enabling fact based decision making. Deepak has worked in areas such as: pricing, customer lifetime value, fraud and crime prediction.