Market Data For Motor Pricing FINAL.pptx [Read-Only]€¦ · Adjustment Mix-adjusted profile ... He...
Transcript of Market Data For Motor Pricing FINAL.pptx [Read-Only]€¦ · Adjustment Mix-adjusted profile ... He...
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.
2towerswatson.com
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
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
3towerswatson.com
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.
4
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
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
5towerswatson.com
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
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
6towerswatson.com
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
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
7towerswatson.com
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
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
8towerswatson.com
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?
towerswatson.com © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
9
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
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
10towerswatson.com
Commercial terms
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
11towerswatson.com
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
towerswatson.com © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
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.
12
© 2015 Towers Watson. All rights reserved.
We appreciate the opportunity to present our solution to you
© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
14towerswatson.com
Lewis MaddockSenior Consultant
Sveavagen 15510th Floor113 46 StockholmSweden
T +46 8 506 417 75M +46 7 216 335 92
Christian ClemmensenLeader P&C Nordics
Sveavagen 15510th Floor113 46 StockholmSweden
T +46 8 506 417 79M +46 7 088 094 62
Appendix: BiographiesA unique combination of expertise and IT capability makes Towers Watson the global market leader in actuarial and related insurance software
© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Lewis Maddock
towerswatson.com © 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
17
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
towerswatson.com © 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
18
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