Success Story: Financial Institution

Background:

This organization had a line of business that was very profitable.  The main reason for their success was because they were early to market with new and attractive features in their product.  Because the product had so many options and features, they believed that there was a wide variation in the profitability of each individual contract.  As more competition entered that market segment, they were being pressured by the sales organization to be more price competitive in specific renewal situations. 

Situation:

How can the organization bid more competitively on specific contract renewals when the profitability of individual contracts was unknown?  

Action:

Working with actuaries, we were able to develop a profitability model.  The data required to drive this model was scattered throughout a number of operational systems.  We were able to pull this data together into a single data source.  We then built a process that allowed the actuaries to “run” the model on demand for identified contracts.  This ultimately allowed the organization to compete with confidence.