SAS' solution powers Bajaj Allianz to offer differential pricing

MUMBAI, INDIA: SAS Institute, India, a wholly owned subsidiary of SAS Institute Inc, has announced that Bajaj Allianz, a private non life insurer has selected comprehensive SAS Rate Making solution for meeting the demands of the highly dynamic insurance market. Motor insurance has been de-tariffed since January 2007, whereby insurers can charge differential premium to their customers based on risk factor rating system.

The Indian Insurance sector has become highly competitive, with the de-regulation emerging as a new challenge. Bajaj Allianz aims to provide the best combination of price and product to gain significant advantage in the market. In-depth analysis obtained on customer behavior with SAS solutions would enable Bajaj Allianz to tailor its motor insurance product and price offerings for further strengthening its customer acquisition and retention strategies.

“Our mission is to be responsible, customer focused market leader, by understanding the insurance needs of the consumers and translating it into affordable products that can deliver value for money for our customers”, said Kamesh Goyal, CEO, Bajaj Allianz General Insurance. "SAS with its previous expertise in the Insurance business and its unique ability to design and customize solutions, gives us a winning edge and provides us a unique ability to determine the right pricing with unmatched and increased accuracy”, he added.

“Increased competition, managing profitable growth, deregulation and rising claim costs are some of the characteristics impacting insurance organizations. To effectively compete in this environment it is important for insurance companies to acquire and retain profitable new business. The key to profitability, however, lies in pricing products accurately”, said Sudipta K Sen, CEO and MD, SAS Institute India Pvt. Ltd. "We are very pleased to partner with Bajaj Allianz and help them manage strategy, risk, customers and channels and arm them with a significant competitive advantage”, he added.

Benefits of SAS Ratemaking solution to Bajaj Allianz:

• SAS Ratemaking will enable Bajaj Allianz to consolidate its market share and move ahead of its competitors in the new free pricing regime
• A differential pricing on its motor insurance products would allow the insurer to not only retain its existing customers with better offerings, but would also allow Bajaj Allianz to charge the best possible premium from profitable as well as non-profitable customers.
• Ability to differentiate between the requirements of one customer and another would allow the insurance company to offer need-based products.
• Ability to manage the motor insurance portfolio better.