Our client, a leading provider of life insurance and annuity plans in the US, wanted to evaluate the possibility of positioning the supplemental health insurance plans as a loss leader to drive additional enrolments and higher customer lifetime value (LTV). More specifically, the client wanted to:

• Understand the impact of lowering prices on new enrollments
• Optimize pricing strategy across jurisdictions and plans to maximize lifetime value while maintaining a healthy portfolio (considering the downstream morbidity and claims experience)

• Competitor price that significantly impacts enrollment was not reliably available for every product segment
• Additionally, there was no information available on future competitor prices