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CASES

Commissions benchmarking

Fixed & Contingent
Scenario-based forecasting
Hyper-targeted

for capacity & rates

market sizing

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Leverage actionable, ready-to-use insights to make decisions – or let us bring together our data with your data to move to action faster

Insurance Investors & Analysts

Market sizing and carrier growth benchmarking by distribution channel

01

Compare carrier performance ‘apples-to-apples’ with Pythia’s expert classification system – 5000+ writing carriers split into several classes, incl. independent agency-first, exclusive agency-first, direct-first, fronting carriers, farm bureaus etc 

Avoid diligence guesswork by leveraging Pythia’s 10+ highly proprietary metrics by geography, Admitted vs E&S and LoB, including carrier premium growth decomposed to various drivers (e.g., insurance rate hardening, new client acquisition), fixed vs contingent commission rates, cat-related loss ratio

Carrier cost benchmarking

02

Compare carrier cost levels across 30+ categories by State, LoB, Admitted vs E&S  and channel – including payroll cost for underwriters, advertising costs, tech investment costs, rental costs, sales data acquisition costs etc 

Leverage full carrier P&L at the LoB, State, Admitted vs E&S and channel level

In-depth market assessment to support strategic thinking – by industry, geography, segment and insurance LoBs

04

Gain unprecedented transparency in assessing carriers, brokers, insuretechs and others by leveraging the deepest view available in the market on insurance premiums, rates, average insurance spend, macro indicators by industry, geography, customer size segment and LoB, with 30+ years of historicals 

Enhance your strategy-building efforts by pinpointing ‘winning’ market niches for your clients, distinguishing between insurance market growth that comes from rates hardening, expansion of client base, changes in limits or economic growth of insureds

Market forecasting under different scenarios, tailored to specific brokers or carriers

04

Leverage our proprietary AI model’s market projections, tailored to the geo footprint, product mix, industry mix of carriers and/r brokers – powered by public and private data with 30+ years of robust historicals

Use your assumptions and build different ‘versions of the world’, stress testing your investment projections

Identification of undervalued targets – based on performance and where they play

05

Invest through-the-cycle in carriers, brokers and others that focus on in industry niches that are sustainably growing 

Shortlist carriers that exhibit top-quartile performance vs their peers on new client acquisition and are focusing on high-value products & regions

Agencies & Regional Managers

Identification of the most attractive local industry niches, to build a better, smarter strategy

01

Gain unprecedented transparency in assessing markets to set your agency’s strategy“Double-click” on insurance premiums, rates, average insurance spend, macro indicators and other KPIs by industry, geography, customer size segment & LoB, with 30+ years of historicals

Distinguish between insurance market growth that comes from rates, changes in limits, new client acquisition or client economic growth, to find true winning niches in your regional market to invest in

Fixed commission rates benchmarking - separately for Admitted and E&S

02

Are your carrier partners paying you fixed commissions at par with what they pay other brokers?

Use our proprietary data on fixed commissions benchmarks to gain a clear perspective on the fixed commission rates each carrier pays by State, LoB and Admitted vs E&S and assess how valuable your relationship is for them. 

Focus especially on LoBs & States where carriers exhibit high profitability and are paying you fixed commissions below what they pay other brokers. Pythia can put 2-and-2 together for you!

Targeted negotiations with carriers retailers/ wholesalers (both at the desk level and at the regional level)

03

Shortlist policies with fixed commission rates materially lower than the State & LoB benchmark (e.g., 5+ percentage points lower)

Conduct tactical fixed commission rates negotiations on policy renewal – to bring policy commission rates at par with industry levels

Engage with carriers/ wholesalers regionally and pursue fair agreements on commissions rates that support sustainable growth for both parties and appropriate distribution of value

Identification of the right markets for placement - especially for hard-to-place lines

04

Build a clear perspective regarding which writing carriers have appetite for specific products in specific regions (and whether the appetite is shrinking or expanding)

Be more targeted in seeking appointments with the right carriers that can cover your clients needs, leveraging the above information

Carrier performance comparison, tailored to the region and products you care about

05

Gain a 360° view on carrier strategy and performance in your region, product-by-product, separately for Admitted vs E&S – What products are they writing? Are they growing or shrinking? Are they profitable?

Protect the interests of your clients, placing business with resilient carriers that are committed to growing in the local market

Future-proof your agency, using Pythia's forecasting model to explore how business can evolve in your region

06

Leverage our proprietary AI model’s market projections, tailored to your geo footprint, product mix, industry mix  & client segment mix – powered by public and private data with 30+ years of robust historicals

Use your assumptions and build different ‘versions of the world’, stress testing your planning and sales projections

With full transparency on what each carrier “brings to the table”, negotiate the right agreements, avoid risks and build strong partnerships with carriers

Hyper-targeted lead generation for specific industries, geographies and size segments

07

Access detailed lists of businesses in specific regions, industries, customer segments (e.g., Building Finishing contractors in Alachua County, Florida), including the name of key leaders, and contact details (phone, email, website)

Go after priority leads to build organic growth at a time that rates are gradually slowing down

M&A / Corp Dev / Partnerships

High-value target identification

01

Scan the market comprehensively to prioritize carriers for M&A. Filter the market based on specific criteria (e.g., carriers with strong loss performance, high cost basis, specific book mix, exposure level to E&S and specific geographic footprint, that have not undergone acquisition in the recent past).

Leverage a user-friendly terminal that allows you to parse through opportunities with speed and precision.

In-depth MGA diligence

02

Access concrete data on the performance of the MGA market across products and regions, compared to carriers (split by channel).

Pinpoint which niches have been a fruitful ground for MGA overperformance and where MGAs have typically underperformed carriers, avoiding costly mistakes of engaging with MGAs in areas that have historically seen significant losses for MGA peers.

Granular market assessment – by industry, geography, segment and insurance LoBs

03

Gain unprecedented transparency in assessing the relevant market for your target. “Double-click” on insurance premiums, rates, average insurance spend, macro indicators and other KPIs by industry, geography, customer size and LoB, with 30+ years of historicals

Pinpoint ‘winning’ market niches by distinguishing between market growth that comes from rates hardening, expansion of client base, changes in limits or economic growth of insureds 

Would you really want to pay for growth due to hardening rates?

Market forecasting under different scenarios, tailored to specific agencies

04

Leverage our proprietary AI model’s market projections, tailored to the geo footprint, product mix, industry mix  & client segment mix of target agencies or carriers – powered by public and private data with 30+ years of robust historicals

Use your assumptions and build different ‘versions of the world’, stress testing the value of acquisition targets to build upside/ downside investment cases

Assessment of carrier strategy in specific regions and for specific products

05

Gain a 360° view on carrier strategy and performance in target regions, product-by-product, separately for Admitted vs E&S – What products are they writing? Are they growing or shrinking? Are they profitable? What is the probability of exiting the market?

With full transparency on what each carrier “brings to the table” for your (target) agency, assess valuation implications – often preventing costly mistakes

Brokers: Carrier relations

Fixed commission rates benchmarking & assessment of true carrier relationship value

01

Are your carrier partners paying you fixed commissions at par with what they pay other brokers? 

Use our proprietary data on fixed commissions benchmarks to gain unprecedented transparency on the fixed commission rates each carrier pays by State and LoB – separately for Retail and Wholesale – and assess how valuable your relationship is for them

Focus especially on LoBs & States where carriers exhibit high profitability and are paying you fixed commissions below what they pay other brokerages. Pythia can put 2-and-2 together for you!

Setting target fixed commissions levels across your agencies, for both Admitted and E&S

02

Set clear targets for fixed commissions levels for your agencies, separately for Admitted and E&S business. To do so, consider the average rates paid by carriers or wholesalers in specific products & States. Goal is to be fairly compensated for the value your bring to the table, at par with the market

Pinpoint carriers or wholesalers that offer fixed commissions rates below market average and below what they pay other brokers for targeted negotiations (see below)

Effective carrier and wholesaler negotiations, both at the desk level and centrally

03

Shortlist policies with fixed commission rates materially lower than the State & LoB benchmark (e.g., 5+ percentage points lower) 

Conduct tactical fixed commission rates negotiations on policy renewal – to bring policy commission rates at par with industry levels

Engage with carriers/ wholesalers and pursue fair agreements on commissions rates that support sustainable growth for both parties and appropriate distribution of value

Contingent commission rates benchmarking & negotiations

04

Strategically assess which carriers typically make agreements on contingent commissions and how much they are willing to pay

Negotiate with carriers and wholesalers productively, armed with concrete data on contingent commissions levels by product. Ask for the right incentives for specific products, to fairly split value between the two organizations

Carrier performance comparison, tailored to the region and products you care about - to support negotiations

05

Gain a 360° view on carrier strategy and performance in your region, product-by-product, separately for Admitted vs E&S – What products are they writing? Are they growing or shrinking? Are they profitable?

Compare carrier performance ‘apples-to-apples’ using Pythia’s expert classification system  from 5000+ writing carriers filter only for those that are ‘independent agency-first’ (e.g., consider Liberty Mutual’s performance, excluding tied agency and Direct subsidiaries)

With full transparency on what each carrier “brings to the table”, negotiate the right agreements, avoid risks and build strong partnerships with carriers

Strategy & Operations

Identification of the most attractive market niches to invest in

02

Gain unprecedented transparency in assessing market niches to invest in. “Double-click” on insurance premiums, rates, average insurance spend, macro indicators and other KPIs by industry, geography, customer size segment and LoB, with 30+ years of historicals

Distinguish between insurance market growth that comes from rates, limits, new client acquisition or client economic growth, to find true winning niches

Growth benchmarking vs peers by distribution channel

03

Compare carrier performance ‘apples-to-apples’ with Pythia’s expert classification system – 5000+ writing carriers split into several classes, incl. independent agency-first, exclusive agency-first, direct-first, fronting carriers, farm bureaus etc

Analyze growth performance separately for Admitted vs Excess & Surplus business at the level of carrier groups, distribution channel or separately for each writing carrier across States and LoBs

Compare growth due to new client acquisition across peers (vs growth due to rates, changes in limits or general insureds’ economic growth)

Cost benchmarking vs peers by carrier classification

04

Compare own cost levels vs peers across 30+ categories by State, LoB, Admitted vs E&S  and channel – including payroll cost for underwriters, advertising costs, tech investment costs, rental costs, sales data acquisition costs etc

Leverage full carrier P&L at the LoB, State, Admitted vs E&S and channel level

Stress-testing of budget and strategic planning assumptions with Pythia’s forecasting model

05

Leverage our proprietary AI model’s market projections, tailored to your geo footprint, product mix, industry mix  & client segment mix – powered by public and private data with 30+ years of robust historicals

Use your assumptions and build different ‘versions of the world’, stress testing your budgeting and/or strategic plan projections

Hyper-targeted lead generation for specific industries, geographies and size segments

01

Access detailed lists of businesses in specific regions, industries, customer segments (e.g., Building Finishing contractors in Alachua County, Florida), including the name of key leaders, and contact details (phone, email, website)

Pursue direct client engagement or partner with local agencies to access target accounts

Carriers: Broker relations

Fixed commission rates benchmarking & negotiations

02

Set your commissions/pricing strategy State-by-State – separately for Admitted vs E&S – considering our fixed commissions benchmark for the independent agency channel and looking at case examples of what specific carriers are paying

Identity products and regions where higher fixed commission rates are correlated with premium growth (vs not) and negotiate smarter deals with agencies (e.g., reduce commission rates where currently paying above market OR where above-average commission rates not linked to incremental growth) 

Identify profitable policies that are at risk of re-marketing by agencies (this is particularly true with there is a mismatch between market average fixed commission rates and what you are paying the agency)

Contingent commission rates benchmarking & negotiations

02

Strategically assess which carrier peers typically make agreements on contingent commissions and how much they are willing to pay

Engage with brokers productively, armed with concrete data on contingent commissions levels by product. Provide the right incentives to boost growth in specific regions for specific products, rather than with “blanket” incentives

Growth benchmarking vs peers by distribution channel

03

Compare carrier performance ‘apples-to-apples’ with Pythia’s expert classification system – 5000+ writing carriers split into several classes, incl. independent agency-first, exclusive agency-first, direct-first, fronting carriers, farm bureaus etc

Analyze growth performance separately for Admitted vs Excess & Surplus business at the level of carrier groups, distribution channel or separately for each writing carrier across States and LoBs

Compare growth due to new client acquisition across peers (vs growth due to rates, changes in limits or general insureds’ economic growth)

Consultants & Advisors

Market sizing and carrier growth benchmarking by distribution channel

01

Compare carrier performance ‘apples-to-apples’ with Pythia’s expert classification system – 5000+ writing carriers split into several classes, incl. independent agency-first, exclusive agency-first, direct-first, fronting carriers, farm bureaus etc 

Avoid diligence guesswork by leveraging Pythia’s 10+ highly proprietary metrics by geography, Admitted vs E&S and LoB, including carrier premium growth decomposed to various drivers (e.g., insurance rate hardening, new client acquisition), fixed vs contingent commission rates, cat-related loss ratio

Carrier cost benchmarking

02

Compare carrier cost levels across 30+ categories by State, LoB, Admitted vs E&S  and channel – including payroll cost for underwriters, advertising costs, tech investment costs, rental costs, sales data acquisition costs etc 

Leverage full carrier P&L at the LoB, State, Admitted vs E&S and channel level

Fixed and contingent commission rates benchmarking

03

Support carriers and brokers in building their fixed commissions strategy by product and State (separately for Retail vs Wholesale) and in negotiating smarter deals that fairly distribute value generated 

Leverage robust data on fixed commission rates for each carrier by State and LoB and identity products and regions where higher fixed commission rates are correlated with premium growth (vs not)

In-depth market assessment to support strategic thinking – by industry, geography, segment and insurance LoBs

04

Gain unprecedented transparency in assessing carriers, brokers, insuretechs and others by leveraging the deepest view available in the market on insurance premiums, rates, average insurance spend, macro indicators by industry, geography, customer size segment and LoB, with 30+ years of historicals 

Enhance your strategy-building efforts by pinpointing ‘winning’ market niches for your clients, distinguishing between insurance market growth that comes from rates hardening, expansion of client base, changes in limits or economic growth of insureds

Market forecasting under different scenarios, tailored to specific brokers or carriers

05

Leverage our proprietary AI model’s market projections, tailored to the geo footprint, product mix, industry mix of carriers and/r brokers – powered by public and private data with 30+ years of robust historicals

Use your assumptions and build different ‘versions of the world’, stress testing your investment projections

Regulators & Public Institutions

Most in-depth market assessment – by industry, geography, segment and insurance LoBs

01

Gain unprecedented transparency in assessing the insurance landscape. “Double-click” on insurance premiums, rates, average insurance spend, macro indicators and other KPIs by industry, geography, customer size segment and LoB, with 30+ years of historicals

Make precise interventions that protect insureds and support healthy growth for carriers and brokers

Scenario-based market forecasting

02

Leverage our proprietary AI model’s market projections – powered by public and private data with 30+ years of robust historicals

Use your assumptions and build different ‘versions of the world’ and inform regulatory measures planned

Benchmarking of carriers’ true performance vs peers – with all noise removed

03

Compare carrier performance ‘apples-to-apples’ with Pythia’s expert classification system – 5000+ writing carriers split into several classes, incl. independent agency-first, exclusive agency-first, direct-first, fronting carriers, farm bureaus etc

Make targeted, data-driven interventions by leveraging Pythia’s 10+ highly proprietary metrics by geography, Admitted vs E&S and LoB, including carrier premium growth decomposed to various drivers (e.g., insurance rate hardening, new client acquisition), fixed vs contingent commission rates, cat-related loss ratio

Compare carrier cost levels across 30+ categories; e.g., payroll cost for underwriters, advertising costs, tech investments etc

Fixed and contingent commission rates benchmarking

04

Consider the evolution of fixed and contingent commission rates by product and region. Examine where higher fixed commission rates are correlated with premium growth (vs not)

Strategically assess which carrier peers typically make agreements on contingent commissions and how they are influencing broker behavior

Ready to see how Pythia can help you make the right decisions?