Admiral

The Challenge

Admiral led the market in bringing internet sales capabilities to their services underpinned by a pricing engine which could set prices to market on a weekly basis. Subsequent developments in the market created significant competition to Admiral’s services including daily or hourly price setting.

Admiral wanted to improve their pricing engine capabilities to be able to lead the market once more.

bedigital’s Solution

bedigital worked with Admiral to develop their Google Analytics technical platform services, within the security and operational requirements of the business, and integrate the platform into live services.

In parallel we undertook service design with the business to understand current capabilities, painpoints, and perceived opportunities available from new services.

We developed an AI-based pricing engine trained using historic data. Initial data analysis was undertaken to remove data that the AI shouldn’t use for pricing (gender, etc) and we used explainable AI techniques to ensure that the pricing engine could be interrogated and show that non-compliant outcomes were not in breach of regulations.

The new pricing engine was trialled for a 2-week period in live using A/B testing to allow the AI based capability to be compared with the existing capability.  This allowed data to be gathered and understand the impact on customer purchasing decisions and pricing differences which occurred. The data gathered was also used to create a comparison baseline for regulatory approval of the approach.

Admiral has implemented the new pricing engine in 3 UK lines of business and is trialling a modified version in the USA market. Within the UK the new capability has increased Admiral’s ability to price to market conditions resulting in 10% increased sales via comparison sites with no increased cost of sale. Renewal pricing changes have increased customer retention by 15%.