Monday, December 1, 2025

From One to Many, or Zero to One? Rethinking Innovation in Pricing

Once I first learn Jeremy Keating’s PriceWriter e-book, I used to be reminded of Peter Thiel’s thought in Zero to One. Thiel attracts a distinction between horizontal progress and vertical progress. Horizontal goes from one to many, copying what works, spreading wider. Vertical goes from zero to at least one, creating one thing genuinely new.

 

The Downside

On the whole insurance coverage, most of what we name innovation is horizontal. We copy one another’s fashions, tweak algorithms, optimise inside silos. That takes us from one to many, but it surely doesn’t change the sport.

The Spark

At Shopper Intelligence we realised we had a possibility to strategy issues in a different way. With our whole-of-market dataset, we might push for vertical progress. We might use our knowledge to create context and produce explainability into fashions which are usually handled as black bins.

The Journey

Over the previous 12 months, we now have explored how explainable AI will be mixed with market-wide context to supply readability and credibility. It doesn’t simply assist insurers optimise, it helps them rethink.

The Consequence

Whenever you step again, you see that there are totally different methods at play. Some insurers shield retention, others push for quantity, some pivot into new buyer clusters. There may be not a technique ahead, there are various and with context, you may see the place your personal technique matches.

Closing Thought

Horizontal innovation will at all times matter, however the breakthroughs come from going vertical. Meaning creating one thing new, not simply copying what already exists. By combining explainable AI with whole-of-market perception, we might help insurers escape the black gap of opaque fashions and transfer from one to many into zero to at least one.

 


✨ Prepared to maneuver past reactive pricing?

Uncover how explainable AI and geospatial intelligence can rework your technique. Discover our AI for Insurance coverage Pricing options and see how one can construct fashions you may perceive, belief, and defend.

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