Market Data For Motor Pricing FINAL.pptx [Read-Only]€¦ · Adjustment Mix-adjusted profile ... He is responsible for assisting with marketing and ... Market Data For Motor Pricing

Market Data For Motor PricingBased on price data from comparison website Comparo.dk

© 2015 Towers Watson. All rights reserved.

Presented by Lewis Maddock

25 February 2015

Contents

© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

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Introduction

Denmark’s first Motor Price Insurance index

The launch of a new service

Value proposition

Commercial terms

Appendices

A – Biographies

Towers Watson and Comparo


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Towers Watson are the leading Nordic provider of P&C insurance pricing consulting and software and one of the world’s leading Professional Consulting firms.

We are a trusted advisor to the world’s leading organisations, known for delivering thought leadership and top quality business solutions.

We are the leading providers of actuarial pricing software, including products such as Emblem and Radar

Comparo.dk began trading as a price comparison website for motor insurance in 2013 and aims to provide quotes from all online insurers in the Danish market.

Comparo has been successful in generating continuous quote traffic through its web portal for much of this time.

Quote data collected by Comparo.dk is for real customers obtaining prices for their car insurance on any given day.

Strong history of powerful analytics in insurance combined with a new innovator in the Danish market

Danish Car Insurance Index

towerswatson.com © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

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IndexCharacteristic TW/ComparoFrequency QuarterlyLifestage NBPrice metric Average 1 to 5Price type QuotedWeights PremiumUnderlying data c.100kDistribution AggregatorBreadth Excludes closed insurersAdjustment Mix-adjusted profileTelematics policies ExcludedMulti-car policies ExcludedData period 3rd month of quarterSeries start date 2014

Tracks average market premiums for comprehensive motor insurance

The new monthly subscription service


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Towers Watson and Comparo.dk have collaborated to provide a monthly service designed to provide detailed insight into motor market price structure and movements

What is the service? Our new subscription service discloses the results of several analysis on the comprehensive motor insurance quote data

performed at a granular level and on a monthly basis, thereby providing a deep insight into market prices, price movements and dispersion.

This is in contrast to the “Towers Watson/Comparo Danish Comprehensive Car Insurance Price Index" that provides a high-level summary of price trends for comprehensive motor insurance in Denmark based on analysis of recent quote data from Comparo.dk. Results are published in the media every quarter

How is the service deployed? Excel macro-enabled workbook, issued on a monthly

basis to subscribers (currently compatible with Excel 2007/2010)

What is included in the workbooks? The service is split into two tiers as described below

Do you have to be a Comparo.dk partner? The service is available to organisations which are

not currently Comparo.dk partners and is identical across all subscribers

Compliance matters Any price statistics in this service are based upon

the five cheapest premiums for each quotation. No identification of individual insurance providers’ prices is possible

The index is compiled using anonymous customer data.

We would welcome the opportunity to meet with you and demonstrate how we can help to improve your insight into market price structures and movements.

Monthly data service packages


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Average price and price dispersion measures by one-way and two-way interactions of factors including:

Geographic rating area Vehicle group Age of customer Number of claims in last 3 years Excess Years of driving experience Declared mileage (km).

Market price and price dispersion model structures and relativities.

Basic package included

Vehicle grouping and rating area mappings to enable the market model to be used for scoring policies.

Provided in two csv files Postcode used for rating area linking Vehicle attributes used for vehicles

A customised competitiveness scoring model indicating the proportion of customer quotes where a top 3 ranking was achieved.

Basic Enhanced

Choose a package to meet needs dependent on the level of sophistication in pricing

Value proposition for the basic service


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All online insurers contributing to the index each month

Results based on a calibrated profile of customers

Provides an 'at a glance' high-level view of market price movements and also sheds light on momentum and volatility in market prices

Market model parameters provide a 'purer view' of price movements by segment

Delivered in a timely manner; frees up in-house pricing and underwriting resource to conduct other analyses

Issued monthly to allow subscribers to stay on top of market rate movements

Affords the user the ability to drill down into different segments in order to understand the underlying drivers of price movements

Provides context and important qualitative input into both technical pricing and retail pricing

Flexible, easy to use and to distribute within organisations

Value proposition for the enhanced service


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Capability to calculate a market price and price dispersion score on customer data from renewals and new business using the market model

A comprehensive motor market vehicle grouping and rating area mapping

Enhanced package

Competitiveness measures can be incorporated into price decision analyses and used to enhance retention/demand and elasticity models.

A readily understood measure of competitiveness for communicating to senior management

What does it mean? Benefits for subscribers

A view of recent market prices and their momentum by predefined customer segments

An insight into the dispersion of market prices for the pre-defined customer segments

Basic package

A key input into price decision making on a monthly basis

Useful to identify opportunities and inform strategy

Market price data significantly enhances the capabilities of an insurer to make better pricing decisions

C-Suite – to provide an independent and granular view of movements in price

Actuarial pricing –e.g. input into technical pricing, retail pricing and price optimisation

Marketing departments –understand pricing trends in key segments of the market

Who should be interested?


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The index subscription service is targeted at a wide range of consumers within the subscribing organisation

Other parties requiring a detailed view of market prices and momentum (e.g. equity analysts, institutional investors, private equity houses)

Underwriters – e.g. provide information on trends and areas of misalignment versus the market, informing price adjustments

Heads of Distribution, Customer andChannel Strategy

Other parties

Distribution, Customer and

Channel Strategy

Underwriters

Marketing departments

Actuarial pricing

C-Suite

Demo


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Commercial terms


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From 20,000 DKK monthly fee From 50,000 DKK monthly fee

Basic Enhanced

Overall Available now

Service will be issued by the 10th working day of each month

Contracts are with Towers Watson

12 month minimum term with fees payable annually in advance.

Choose a package to meet needs dependent on the level of sophistication in pricing

Motor market price subscription service


Market price insights based on sound modelling techniques on real and relevant quote data

Summarised in a readily accessible format for use directly by stakeholders or for further modelling

Our Solution has been designed to support enhanced

analytics and reporting for use in

price decision making.

The accuracy is assessed at a granular level and

on a monthly basis, thereby providing a deep insight into market prices,

price movements and dispersion

Predictive Comprehensive Car

Insurance Price models that provide a detailed look at

price trends for comprehensive motor

insurance in Denmark.

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© 2015 Towers Watson. All rights reserved.

We appreciate the opportunity to present our solution to you


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Lewis MaddockSenior Consultant

Sveavagen 15510th Floor113 46 StockholmSweden

T +46 8 506 417 75M +46 7 216 335 92

[email protected]

Christian ClemmensenLeader P&C Nordics

Sveavagen 15510th Floor113 46 StockholmSweden

T +46 8 506 417 79M +46 7 088 094 62

[email protected]

Appendix: BiographiesA unique combination of expertise and IT capability makes Towers Watson the global market leader in actuarial and related insurance software


Lewis Maddock


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Lewis MaddockSenior Consultant

Sveavagen 15511346 StockholmSwedenTel: +46 7 216 335 [email protected]

Background

Lewis is focused on developing the Nordic P&C practice of Towers Watson after moving to Stockholm in June 2012.

He is responsible for assisting with marketing and product development for the Nordic region including software and consultancy as well as advising clients on issues across several disciplines.

Lewis graduated with a first class master’s degree in mathematics from Imperial College, London in 2004.

He has spoken at seminars on many general insurance issues and is a Fellow of the Institute of Actuaries.

Experience

Technical Technical pricing

Reserving

Capital modelling

Claims analysis

Sectors Private motor

Household

Selected Projects

Lewis has 8 years of experience in non-life insurance consulting. He has experience in advising personal lines general insurance clients on a variety of projects in reserving, capital modelling, pricing and claims management across several European markets.

He has specialised in motor and household products and has recently focused his attention on the Nordic markets

Lewis has led large projects to successfully implement new premium rates for large motor and household insurers in different European markets and helped drive initiatives to better align pricing, underwriting, marketing and distribution within clients businesses.

Christian Clemmensen


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Christian ClemmensenLeader P&C Nordics

Sveavägen 155113 46 StockholmSwedenTel: +46 (0) 8 506 417 [email protected]

Christian heads up the Nordic P&C team and has prior to this role held positions as head of Capital and Risk management and Chief Actuary.

Christian joined the Stockholm office of Towers Watson in 2011

Christian holds a Masters degree in Actuarial Science from the University of Copenhagen

Christian is a fellow of the Danish association of Actuaries.

Christian has more than 15 years of experience in Non-Life insurance working with all aspects of actuarial practice. Specifically Christian has solid experience across the Nordics and Baltic region with: Peer reviews of reserves IPO projects Reviewing reserves in M&A projects Additionally Christian has in-depth knowledge of Solvency II.

Background Selected Projects

Experience

Technical Pricing

Capital modeling

Reserving

Sectors Private motor

Household

Documents

Market Data For Motor Pricing FINAL.pptx [Read-Only]€¦ · Adjustment Mix-adjusted profile ... He is responsible for assisting with marketing and ... Market Data For Motor Pricing