Insurance Pricing Insurance pricing: a key advantage by msg life / 24. January 2020 The democratization of access to information and new technologies, the emergence of new risks (such as cyber-attacks or drones, among others) and the increasing demands of consumers are new and significant challenges that the insurance sector has to face in order to remain competitive. It is essential to know and anticipate customers’ needs so that flexible products can be developed and adapted to them as accurately as possible. By adopting systems and processes, insurers will respond positively to their customer expectations, at the same time that new business opportunities are easily deployed. In msg life we have found that, in this market with new needs, new risks, and new business models, there are more and more companies in the insurance sector that are decoupling the charging function of traditional back-office systems, less flexible and less prepared for the current scenario in the different lines of business – Life, Non-Life and Health. Taking that in consideration, in msg life we have developed a sophisticated modular solution, Unified Product Platform or Product Machine, which allows insurers, in a very simple way, to customize and price their products with maximum precision, taking into account the usual wide range of coverage and all available charging variables. This new software makes it easier to carry out a personalized pricing strategy, with products that are more adapted to the needs of its customers and a fairer price for them, while guaranteeing efficiency and reducing risk. Companies that already use the msg life Product Machine have found that its use significantly increases the ratio of positive responses, as the client receives a fully customized offer and rate to their needs and profile. In addition, insurers are more prepared to innovate and respond with agility to the new needs that are emerging in the market, such as micro insurance, among others. For the mentioned reasons, today, in the insurance sector it is essential to have the possibility to customize, segment and price products accurately, since all this benefits both companies and their customers, for various reasons. In the first place, it improves the capacity of analysis and adaptation of the products, and helps to calculate the prices in a dynamic and personalized way; secondly, it generates trust in consumers, who are increasingly open to innovative commercial proposals; and, thirdly, it guarantees to the insurers the maintenance and, even, the increase of the market share when compared to the competitors that have not yet adapted their products to the new business reality. By taking into account the needs of the end customer, adapting its systems and processes to this constantly changing world, the company has more tools and a stronger capability to meet the challenges of the current and future market.