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cc-by (c) Bolancé Losilla, Catalina et al., 2018
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/120164

Price and Profit Optimization for Financial Services

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Prospective customers of financial and insurance products can be targeted based on the profit the provider expects to earn from them. We present a model for individual expected profit and two alternatives for calculating optimal personalized prices that maximize the expected profit. For one of these alternatives, we obtain a closed-form expression for the price offered to each prospective customer; for the other, we need to use a numerical approximation. In both approaches, the profits generated by prospective customers are not immediately observed, given that the products sold by these companies have a risk component. We assume that willingness to pay is heterogeneous and apply our methodology using real data from a European insurance company. Our study indicates that a substantial boost in profits can be expected when applying the simplest optimal pricing method proposed.

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BOLANCÉ LOSILLA, Catalina, GUILLÉN, Montserrat, NIELSEN, Jens perch, THURING, Fredrik. Price and Profit Optimization for Financial Services. _Risks _. 2018. Vol. 6, núm. 1, pàgs. 9-29. [consulta: 21 de gener de 2026]. ISSN: 2227-9091. [Disponible a: https://hdl.handle.net/2445/120164]

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