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Enterprises are constantly seeking to launch innovative pricing strategies into the market. The early-mover advantage intended from such innovations may get significantly watered down if the pricing systems tasked with implementing such changes are inflexible. The inflexibility can adversely impact in two ways – (a) increased delays in rolling out pricing changes; (b) inability to rapidly distribute pricing changes to field staff.

Organizations can implement automated pricing systems that are sophisticated, flexible and business user modifiable by leveraging calculation engines. These systems can consolidate the different blocks of pricing logic used in the organization and ensure efficient distribution of the latest pricing guidance to the field.

Automated Pricing / Rating systems require the following key functionality:

• An easy to use, GUI driven, environment for Business Users to define and test pricing / rating logic: Users should be able to quickly author pricing logic and rules, load market data and base price data into the system, edit (Modify, Copy) different pricing related logic quickly in response to competitor strategies and be able to maintain differentiated pricing based on Private Label Client, Channel, Jurisdiction. Different stakeholders should be able to make adjustments and test at different levels of the pricing logic. Pricing logic should be definable leveraging parameters such as configured products and options, underwriting score, risk class, and deal-level parameters.
• Consolidated repository of pricing logic and rates: Pricing information, instead of being proliferated across multiple systems and XL workbooks can be centralized in a pricing repository. This pricing repository can serve as a central co-ordination point for all pricing changes. This ensures that a consistent, searchable custodian of pricing information is available at all times.
• Streamlined Dissemination of tailored pricing guidance through calculation engine / on-demand price sheet generators: : Pricing tailored to suit different regions, states, branch offices can be rapidly disseminated as on-demand price sheet generators. Furthermore field staff can access accurate and consistent pricing guidance from an automated pricing engine / calculator.

ValueMomentum Services
With a track record of production installations at several Financial Services providers and Insurance Carriers, ValueMomentum is at the forefront in assisting Clients with initiatives related to Pricing / Rating