What position should an insurer adopt in the market?

Namely how should it prices it's products relative to competitors? In dynamic markets, such as UK private car, how should it respond to movements in overall pricing levels? Is it a leader or follower of such moves?

Having clarity about such questions is key to determining the objectives that will drive the pricing process.

In order to address such questions an insurer needs to have clarity about its own value proposition; covering branding, marketing message, product and service features. It also needs good quality competitor intelligence, covering both competitors' marketing propositions, and their strategic intent. It also requires a sound understanding of the industry structure and the market dynamics.

This then provides the basis for the use of tools, such as scenario planning, to provide a platform for informed decision making.