The problem
Loyalty is not a pricing strategy.
A flat renewal uplift treats every policy the same, when the claims experience underneath them is anything but. Profitable, loyal customers get over-charged and shop around, while loss-making segments get carried at a rate that never reflected their risk. The book drifts, quietly, one renewal at a time.
The cost hides in both directions. Every over-priced loyal renewal is a quiet invitation to shop around; every under-priced loss-maker compounds for another term. And because the drift is small at any single renewal, it never forces a decision — it accumulates between rate reviews until the loss ratio makes it visible, a year too late.
What we deliver
Segment-level pricing your committee can sign off.
How it works
Four steps from book to rate.
Segment the book
We build segments from claims experience and policyholder behaviour, not just the rating factors you price on today.
Score renewal risk
Each segment gets an expected-claims and lapse view, so you can see profitability and price sensitivity together.
Model scenarios
Test rate changes and watch modelled margin and retention move, before a single renewal notice goes out.
Document and deploy
Recommendations arrive with their rationale attached, ready for the pricing committee and the rating engine.
Under the hood
What sits behind every rate recommendation.
A rate you cannot trace is a rate you cannot defend. Eight analyses feed each recommendation, and each one is documented for the committee that has to sign it off.
Experience by segment. Ultimate claims cost per segment, not the book average, as the base for every rate move.
Lapse and retention curves. How each segment has actually responded to price, measured from your own renewal history.
Elasticity boundaries. Where a rise holds, and where it simply hands the customer to a competitor.
Cross-subsidy map. Which segments are paying for which, and by how much, under today's rates.
Claims inflation. Medical and travel cost trends loaded into forward rates, not just last year's experience.
Development allowance. Immature cohorts adjusted for the claims still to be reported against them.
Behavioural signals. Tenure, claim history and service contacts that shift renewal behaviour beyond the rating factors.
Portfolio impact. The whole-book margin and volume consequence of every scenario, before it is committed.
What changes
Hold the risks worth keeping. Reprice the rest.
You keep your profitable, loyal customers on a rate that protects them, correct the segments that were never priced for their risk, and walk into every pricing committee with the evidence already in hand.
A flat renewal uplift is a decision not to decide. Somewhere in the book, your best customers are paying for it.
THE TSP VIEWQuestions
What insurers ask us first.
No. We work alongside them. We provide the segmentation, scoring and scenario modelling; your pricing and actuarial teams own the rate decisions and the governance around them.
As granular as your data supports and your governance allows. We build segments from claims experience and behaviour, then aggregate to levels a pricing committee can actually act on.
Yes. That is the core of the scenario tool. You adjust rate by segment and see the modelled impact on margin and retention before any renewal notice is issued.
Yes. Every recommendation is traceable to the evidence behind it, and the methodology is documented so it can be reviewed and audited.
Forward rates are loaded with observed medical and travel cost trends from your own book and the markets you operate in, rather than a single flat assumption. Where the data is too thin to be credible, we say so and show the sensitivity instead.
Yes — an annual cycle is exactly when it pays. The diagnostic runs ahead of your rate review so the committee starts from evidence, and the scenario models stay available to test mid-year corrections if the book moves.