How can insurers enhance pricing accuracy, governance, and transparency?
The client relied on pricing models that lacked sufficient validation controls, auditability, and analytical depth. One product demonstrated adverse loss ratios, impacting profitability, while the flagship product required stronger pricing justification to reinforce market acceptance. Absence of structured audit trails and visual insights limited the ability to track changes or support pricing decisions confidently.
Revamping pricing methodology with stronger validation and transparency
Grant Thornton Bharat conducted a detailed review of the pricing framework and identified key shortcomings affecting pricing accuracy and monitoring. Our recommendations included:
- Redesigning the pricing model for the underperforming product.
- Strengthening audit trail mechanisms to track adjustments.
- Implementing stringent data validation protocols to ensure model integrity.
- Introducing graphical visualisations for clearer interpretation and pricing transparency.
These enhancements were designed to improve analytical robustness, governance, and decision-making confidence.
Pricing transformation supports profitability and product credibility
The impact of our recommendations delivered dual benefits:
- The redesigned pricing model positioned the client to convert the loss-making product into a profitable one.
- Enhanced controls and transparency strengthened the market acceptability of the flagship product.
The organisation now benefits from a more reliable, traceable, and analytically sound pricing environment that supports sustainable performance and regulatory confidence.
