Bolancé Losilla, CatalinaGuillén, MontserratNielsen, Jens PerchThuring, Fredrik2018-02-232018-02-2320182227-9091https://hdl.handle.net/2445/120164Prospective 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.21 p.application/pdfengcc-by (c) Bolancé Losilla, Catalina et al., 2018http://creativecommons.org/licenses/by/3.0/esOptimització matemàticaPolítica de preusMercat financerRisc (Assegurances)Mathematical optimizationPrices policyFinancial marketRisk (Insurance)info:eu-repo/semantics/article6769492018-02-23info:eu-repo/semantics/openAccess