Business Intelligence

An Analytical Approach to Determining Customer Value in the Property and Casualty Insurance Industry

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Executive Summary

The traditional actuarial focus has been to price with an eye on profitability over the next six to eighteen months. However, most corporate goals contain a desire for long-term profitability. This can create a disconnect between the prices charged by insurers and the long-term goals of the company. This paper will explore the components of customer value and how actuaries and analysts can use this information to make more profitable short-term decisions.

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