Data- driven Insurance
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People use insurance service to ensure their houses, insurance companies apply optimization techniques to analyze what insurance premiums are better options for different regions. For example, big data analytics help insurance agents offer dwellers in various regions the right kind of insurance type, depending on specific particularities of that or another place.
Benefits for the company
Real estate companies uses same price optimization techniques to dynamically monitor the marketplace, boost their understanding of risks to cover, and offer the best risk-adjusted prices to their customer, the right kind of information needed to close the deal.
Feasability
High
Type of expertise/ AI domain
Bayesian Approach, Price Elasticity, Market basket Penetration
Internal data required
Pricing History, Purchases
Premium optimization techiniques focus on finding the price that maximizes a defined cost function (or company’s margin), considering many factors like flexibity of prices, location of the customer, seasonal effects, special events and competitor pricing.