FINTECH INSURANCE MARGIN EXPLOSION
SPEND OPTIMIZATION
Despite confidence in their product offering, a fintech insurance company consistently encountered issues with their pricing model that indicated low or even negative margins. Identifying the problem and creating more levers of control in the model would prove to dramatically increase the overall revenue and customer satisfaction.
THE PROBLEM
The pricing of a fintech insurance offering was controlled by a model which was leading to low and sometimes negative margins. The company’s leadership believed in the basic direction of the product, but the model lacked sufficient performance to achieve the desired results.
THE SOLUTION
By adding new features, increasing levers of control (e.g. when to not offer the product), and re-architecting their models we were able to dramatically improve the product’s margin while also growing overall revenue and customer satisfaction.
THE RESULTS
IMPROVED MARGINS BY DOUBLE DIGITS
REDUCED NUMBER OF "BAD OFFERINGS"
BETTER PRICING FOR THE PRODUCT
FEWER NEGATIVE CUSTOMER EXPERIENCES
Data became their competitive advantage! A failing product was turned into a successful revenue driver by utilizing data to create better models while at the same time increasing demand due to more accurate pricing.