Meet TUW “TUW”

Business Benefits

• Successfully combined the goal of retaining core rural segments while selectively acquiring profitable urban business
• Increased profitability by decreasing claim frequency while maintaining portfolio size (GWP)
• Shifted from slow, error-prone, unauditable scripts to a fast, robust, and all-in-one pricing environment
• Reduced time spent on data preparation, enabling the team to focus on building more sophisticated risk models, including machine learning, like gradient boosting
• Decreased claim frequency on the liability portfolio by .5 percentage points

The Story

TUW "TUW", the oldest Polish mutual insurance company, needed to evolve its strategy as its core rural market—known for loyal, low-risk customers—was shrinking. Their portfolio is diverse, with the main lines of business being auto insurance (liability, collision, comprehensive, personal accident, and roadside assistance), making up about 50% of the portfolio. Agricultural insurance accounts for 30%, and personal property insurance makes up the remaining 20%.

The company opened up to the urban segment, which is more competitive and less loyal, according to Maciej Woźny, Head of Pricing. This dual-segment strategy required sophisticated pricing to maintain their profitable core and select only the profitable risks from the urban market, a task that was impossible with their legacy process.

When Woźny joined TUW “TUW”, he inherited a system consisting of "hundreds of SQL and Python scripts" that were time-consuming and difficult to manage and audit. Recognizing that they needed to catch up with competitors that were growing by 30% year-to-year, he sought an integrated solution. The team selected PricingCenter. 

The first project focused on increasing profitability without losing portfolio. The results were immediate: the project led to a 0.5 percentage point decrease in claim frequency on the liability portfolio. By consolidating all tools—from data analysis and visualization to risk modeling (GLMs and machine learning) and price optimization—the system freed the team from time-consuming data preparation and enabled policy-level margin differentiation. This provided TUW "TUW" with the speed and sophistication needed to succeed in the competitive Polish auto insurance market, Woźny said.

"PricingCenter plays a crucial role in our strategy,” Woźny said. “Without advanced data analysis supported by visualization, demand modeling, and price optimization, it wouldn't be possible to realize that strategy."