PRWire

Mumbai based Fractal Analytics Ltd. a leading provider of innovative predictive analytics, organized a first of its kind insurance industry event ‘Forrader’ to discuss innovative pricing for insurance companies in the era of detariffing. Forrader was attended by experts from the insurance industry, who showcased their opinions on insurance trends and practices in the backdrop of the detariffed regime.

The tone for the discussion was set with a key note address by Rakesh Mishra, Vice President and Head of Product Management at Farmers Insurance, (the 3rd largest Personal Line Insurance Company in the US). Rakesh spoke about the evolution of price sophistication in the US Insurance market from a cost based pricing to a demand based pricing to a relationship driven customer acquisition. He then moved on to lay a framework for achieving price sophistication in the organisation and role of information and analytics in the current relationship driven customer acquisition.

Rakesh cited examples from the US insurance industry to emphasize on the need for price sohpistication in Insurance and the impact that brand image has on getting premium over competition. He also emphasized the role of data-driven decision making and predictive modeling, done by firms such as Fractal Analytics, in arriving at innovative pricing techniques for insurance products.

The keynote address was followed by a panel discussion. The experts panel consisted of prominent members of the Indian insurance industry such as Eswarnatarajan N., ICICI Lombard; Alok Kumar, General Insurance Council (GIC); and Rakesh Mishra. They spoke about the current scenario in India and the importance of customer information and analytics in making pricing decisions.

Speaking about innovative pricing for insurance, Srikanth Velamakanni, CEO, Fractal Analytics, said that Indian insurance companies will skip intermediate levels on their way to pricing sophistication. Moving from 3 price-points to 100,000 price segments will decide the success of insurance companies in the detariffed environment. Srikanth added that, multiple price segments using analytical models will be one of the key differentiators for insurance companies.