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.
Conversion rates are a critical early metric. A sudden spike might seem positive, but it could indicate pricing issues like undercutting in certain segments. Because early data can be unreliable, Graham recommends using credibility-based methods such as Lasso Credibility to assess whether changes are justified.
Claims data, while equally valuable, presents similar risks. Early claims may not yet offer a representative view of the risk profile. Instead of reacting hastily, actuaries should look for consistent patterns and gradually incorporate them into pricing models.
Experimentation is also key. Where regulation permits, A/B testing different pricing strategies or marketing approaches can provide insights that traditional models might miss. Tools like Akur8’s DEMAND and DEPLOY modules make it easier to test assumptions without disrupting broader portfolios.
Equally important is collaboration. Actuaries should work alongside underwriters, claims, marketing, and product teams to understand the full picture. A drop in conversion might stem from UX issues, not pricing.
Finally, as data volume grows, insurers can transition to experience-based models. Tools like Akur8’s RISK and RATE modules support this shift, enabling robust simulation and assumption testing.
Read the full blog from Akur8 here.
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