Case study: Optimizing retail insurance price in Saudi Arabia
This is part of a series of yield case studies, showing the changes over time to total insurance sales through improved product recommendations in markets where price movements vary based on regional restrictions.
Saudi Arabia is generally a very inelastic market, where changes to the price do not lead to changes to customer demand – this is shown in the graph where large price increases over time generate great increases in yield and total sales.
Such patterns of consumer behavior can be reflected in Saudi Arabia’s outbound travel market. Saudi Arabians are emerging as one of the largest outbound travel markets, and are the biggest spenders when they travel abroad. By 2025, the Saudi Arabia outbound tourism market is set to surpass US$37 billion!*
Taking into account a nation’s consumer behaviour when implementing product and pricing recommendations through an experimentation platform such as BrightWrite can help show the changes that lead to optimized yield and total sales.
*Source: Kenneth Research, Saudi Arabia Outbound Travel and Tourism Market (2020)