Launching a new insurance product may feel like the finish line, but in reality, it’s only the beginning of a much more nuanced journey. The post-launch period is where real-world performance data begins to flow, offering fresh opportunities and risks for actuaries. Edwin Graham, principal actuarial data scientist at Akur8, outlines the dos and don’ts actuaries should keep in mind when navigating this crucial phase.
One of the most immediate indicators of how your new insurance product is performing is its conversion rate. High conversion rates might be seen as a success, but they can sometimes signal deeper issues like underpricing within specific customer segments. Actuaries must approach this data with caution.
Initial conversion figures are prone to volatility due to small sample sizes or the influence of specific distribution channels.
Tools such as Lasso Credibility can help evaluate the reliability of these early trends and guide the scale of any response. Reacting too quickly without sufficient data credibility can lead to unnecessary volatility in your pricing structure.
Don’t let immature claims data skew your pricing
While monitoring conversion is vital, it’s not the only data point actuaries should consider. Claims data offers another dimension of insight but brings its own set of risks. It’s easy to misinterpret emerging claims patterns as definitive signals, which could lead to premature pricing changes.
Rather than jumping to conclusions, actuaries should look to observe patterns over time and incorporate them gradually into pricing models.
A credibility-based modelling approach ensures that changes are grounded in robust data, helping avoid short-term overreactions that could destabilise pricing frameworks.
Use A/B testing and scenario analysis to sharpen pricing
Where regulations allow, A/B testing can be a powerful way to test pricing hypotheses in real time. Comparing different marketing messages, price points, or distribution strategies can reveal insights that standard actuarial models might overlook.
Platforms like Akur8 Pricing’s DEMAND and DEPLOY modules enable insurers to run these experiments with precision, providing real-time performance monitoring and stress testing.
In markets where live A/B testing isn’t feasible, structured before-and-after analyses and scenario simulations can serve as effective alternatives. These approaches are especially useful in the early stages, when performance data is still building and uncertainty remains high.
Break down silos to improve decision-making
Once a product is live, collaboration across departments becomes indispensable. Pricing actuaries should work closely with underwriters, claims teams, marketing, and product managers to understand the complete picture.
Seemingly isolated changes—such as a drop in conversions or a spike in claims—may be the result of factors outside the pricing team’s control.
For example, changes in marketing demographics or user experience issues could be driving the data shifts. Strong cross-functional communication ensures these nuances aren’t missed, allowing for better-informed pricing decisions and long-term sustainability.
Transition to traditional models as data matures
In the weeks and months following launch, the growing volume of claims and performance data opens the door to more sophisticated actuarial modelling. Instead of relying solely on external benchmarks and expert judgement, insurers can start to build experience-based models tailored to their portfolio.
This involves refining segmentation, adjusting base rates, and developing peril-level models as data becomes more credible. Tools such as Akur8 Pricing’s RISK and RATE modules support this evolution by enabling simulation of pricing impacts and validation of actuarial assumptions.
Importantly, actuaries shouldn’t wait for an arbitrary threshold before making changes. Using credibility-based methodologies like Lasso Credibility can help identify the right time to act, ensuring adjustments are both timely and appropriate.
Striking a balance between action and analysis
Launching an insurance product is just the start. Ensuring its long-term success involves navigating a careful balance between responsiveness and restraint.
With the right tools, a collaborative mindset, and a strategic approach to data, actuaries can help their insurance products evolve into competitive and sustainable offerings.
Read the full blog from Akur8 here.
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