(Image source: Toyota.)
Earnix, a global provider of composable and cloud-based intelligent solutions across pricing and product personalization for insurers and banks, has announced a collaboration with J.D. Power (Troy, Mich.). Together, the two companies offer insurance carriers and auto lending banks and companies the ability to utilize granular and precise information for dynamic pricing strategies, according to a joint statement from the companies.
Through the collaboration, with API access to J.D. Power auto data assets StudyPrice and VIN Precision+, Earnix Price-It ingests vehicle identification number (VIN) contents, build data, safety, and prevention features, along with vehicle valuation transactional analytics. This offers financial companies dynamic pricing strategies, portfolio profitability analyses, and touchless underwriting along with the rerating and analytics needed to build new models and to execute What-If analyses, according to the joint statement.
“Outdated predictions for the value of used cars create a need for assessing exposure at a market value level now for new and used cars,” comments Marty Ellingsworth, Executive Managing Director, P&C Insurance Intelligence, J.D. Power. “In times like this where vehicles are selling for more than base MSRP, vehicles are ‘underpriced’ at the get go. New ways to personalize pricing beyond exposure right-sizing also include gathering the cumulative effects of multiple optional components and features for advanced safety and accident prevention.”
The joint statement explains that the combined solution allows carriers to refresh vehicle data, batch upload data based on VIN regularly and build the best models utilizing the latest valuation data, superseding depreciation curves. Access to the most granular and accurate information combined with the robust data-science, analytical modeling, and AI capabilities of Earnix Price-It gives users the power to create more informed, competitive pricing strategies by leveraging robust customer data and predictive modeling, the statement adds.
This joint effort aims to empower auto lenders to leverage the use of J.D. Power PIN Navigator data for increased pricing and personalization sophistication. In explaining the collaboration’s value proposition, the companies note that, today, there is intense pressure on auto lenders to adjust pricing strategies consistently to reflect increased interest rates, competitors’ pricing approaches and customers’ expectations. “J.D. Power PIN Navigator data is an indispensable source of market data for lenders as it allows comparisons to auto finance offerings and the agility to fine tune customer options,” the joint statement asserts.
“With inflation on everyone’s mind, it is important for enterprises to find solutions to manage it. For banks and insurance carriers, adding vehicle data to machine learning models ensures proper risk alignment and dynamic pricing for their customers,” comments Dror Pockard, Chief Strategy Officer, Earnix. “The data integration of J.D. Power vehicle data with Earnix Price-It is critical for carriers and auto lenders to weather the challenges posed by inflation. With more auto lenders providing joint lending and insurance products, the fact that Earnix Price-It can support both in one solution offers a great way to maximize customer lifetime value across both products.”