Product & Pricing Department
We develop our product and pricing strategy. Regarding product strategy, we promptly identify market trends and changes in customers’ lifestyles, anticipate and determine risk that lurks in daily life. Then we take the lead in developing insurance products that meet customer needs, from planning, obtaining approval from the relevant authorities, to sales. Regarding pricing strategy, based on each insurance product, we developed a mathematical model that combines “reaction towards price changes” and “expected damages*” to forecast the actual state of each customer’s risk statistically, and we are pursuing a rational insurance premium pricing. We are working on improving the accuracy of these models and optimizing and automatizing pricing model building. Also, by enhancing the competitiveness and profitability of insurance products, the mission of our department is to provide insurance products that will be chosen more by the market.
* “Expected damages” mean the average expected insurance benefit payout predicted in the future. This is one of the standard indicators for evaluating the validity of insurance premium rates and the state of insurance payments.
Beat the competition through analysis of all available data
The Product & Pricing Department is made of 4 teams. The team that is in charge of product and underwriting strategy that is competitive and in line with the needs of the market from planning to selling. The team that implements and creates pricing strategy that is always competitive, while at the same time, profitable. Also, the team that constructs the prediction models vital for pricing strategy and the team that calculates reserve funds and conducts profitability analysis.
The AXA Group’s cutting-edge data analysis competency is reflected in pricing that pursues a strategic price setting that guarantees appropriateness, profitability, and high competitiveness.
The moment I think about what kind of product to provide is exciting
After entering the company, I was assigned to the pricing department, and it is currently my 5th year. My primary role is to set prices for insurance products by analyzing all available data and watching market trends. If the price is high, customers will find products less attractive. If the price is too low, it will affect profitability. So, I make use of advanced data analysis to set a balanced competitive price. We all work together as a team, experienced and new employees together, to consider what is the best product offering. The moment when we finally decide on the price is the most exciting.