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Competitive Analysis
In today’s world of ever more complex pricing schemes it is becoming more and more difficult for companies to get a handle on their competitive position. There are many reasons for this increasing complexity, including:
• Underwriting tiers and/or underwriting companies can make it difficult to assess where a company, or group, will actually write an individual risk.
• Many companies now have unique rating algorithms that do not allow for simple comparisons from one company to the next.
• Forms and coverages which can vary significantly form one company to the next.
• The use of “black box” scoring and/or tiering that hides the actual factor(s) being used by a company, or masks how such factors are being used.
• Complex algorithms that may use rating variables in several different ways or stages.
EMB recognizes that meaningful competitive analysis will only continue to get more and more complex if companies continue to try and analyze data in the traditional ways, such as examining numerous rate comparisons for a series of typical risks or a market basket of risks to measure overall competitiveness. That is why EMB relies on such software tools as Rate Assessor to help compile and analyze competitor data.
Whether a company obtains competitor manuals or relies on rating engine outputs for individual risks, EMB consultants can assist companies in compiling the data and summarizing the information such that company management, including Product Managers, can more readily quantify and review the data. Customized reports can be built based on geographical areas, particular rating variables, percentage wins vs. a specific competitor, average ranking per territory, etc. so that a company can review information in a format that they find useful.
For more information on Competitive Analysis please contact any of the EMB America consultants.
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