An Analytical Approach to Determining Customer Value in the Property and Casualty Insurance Industry
Source: Pinnacle Actuarial Resources
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.