Customer price sensitivities in competitive insurance markets

作者：

Highlights：

• A causal inference framework is introduced that allows for discrete or continuous rate changes.

• The proposed framework yields substantially more expected profit on the portfolio than currently realized.

• Competitor offers heavily influence a customer’s renewal behavior in automobile insurance.

• A renewal offer affects not only a customer’s current but also future willingness to stay.

摘要

•A causal inference framework is introduced that allows for discrete or continuous rate changes.•The proposed framework yields substantially more expected profit on the portfolio than currently realized.•Competitor offers heavily influence a customer’s renewal behavior in automobile insurance.•A renewal offer affects not only a customer’s current but also future willingness to stay.

论文关键词：Causal inference,Renewal optimization,Price sensitivity,Customer churn prediction,Extreme Gradient Boosting,Automobile insurance

论文评审过程：Received 21 January 2021, Revised 18 February 2022, Accepted 29 March 2022, Available online 11 April 2022, Version of Record 28 April 2022.

论文官网地址：https://doi.org/10.1016/j.eswa.2022.117133