Dynamic pricing software has traditionally been dominated by a few specialist vendors that provide black-box point solutions. These solutions are slow to react to market trends, regulations, and the increasing volume and sophistication of underlying data.
This is especially true in the insurance space, where companies are looking for ways to transform, differentiate, and compete. As quotes and premiums have moved online to self-service, systems for dynamic pricing have garnered much interest.
In this technical case study, we describe a TIBCO approach to such a dynamic pricing system developed and deployed at the Automobile Association of Ireland. This solution includes:
- Configurations for price optimization and customer acquisition and retention
- Price elasticity data and modeling whereby acceptance may be modeled as a function of price