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Unigarant – Optimal price for new bicycle insurance

How to determine the optimal price for a new product? Unigarant (subsidiary of the Dutch traveler’s association: ANWB) developed a new bicycle insurance and asked flowresulting for advice.


In summary: using value-based pricing, the project has shown that a higher price can be charged than previously thought. The research has also shown that the value for customers significantly increases when the new value reimbursement scheme is expanded.

Flowresulting has helped us a lot to position our new proposition in the market with a solid, fact-based foundation

The introduction of the new ANWB bicycle insurance has been successful. “We directly translated the advice from flowresulting to the product introduction. Sales are steadily growing. Furthermore, bicycle dealers who are currently not associated with the ANWB often approach us, inquiring whether they can also sell the insurance’ says Bert Gelling, product manager at ANWB. The new proposition has helped the ANWB to expand its already leading position in the bicycle market. ‘We aim to be a bicycle authority. The successful market introduction has aided us in taking a major step towards this goal. Other insurers are even complimenting us’, tells the smiling product manager.

The case in short

  • Question: what is the optimal price for our new ANWB bicycle insurance?
  • Approach: using flowresulting’s value-based pricing methodology, the right price for the new product has been set.

Like many other insurance companies, Unigarant often employed an approach to establish the insurance premiums based on costs and intended margin. For this new proposition this was not an option, since there was no data concerning the claims history. Unigarant: ‘We specifically looked for a party which is specialized in complex pricing studies, since we simply do not have that knowledge within the company’.

Furthermore, Unigarant had the ambition to move from the current ‘cost-plus’ pricing method towards value-based pricing: ‘we believe that a proposition should be built from the perspective of a customer. We often conduct customer research to develop or improve propositions, but never in combination with the price. A lot of internal discussions took place, to decide on the optimal price for the new product. If you would ask ten individuals, you would get ten different opinions about pricing. I am convinced that it is extremely important to set a price based on facts and customer insights. You learn that the customer’s perception about the value you offer is always different than your own perception.’

The project also resulted in a number of valuable additional insights. The most surprising insight was related to the number of years that the new value of a bicycle is reimbursed in case of theft. ‘We did not expect that expanding this scheme would have such a major positive impact on the willingness to pay of customers.’

Bert Gelling is very positive about the collaboration with flowresulting. ‘I have experienced flowresulting as a company with a very open culture and an open manner of discussing. Every aspect of the project is conducted thoroughly, but there is always a place for humor.’ When asked where flowresulting excels, Gelling is clear: ‘whatever flowresulting promises, it will be done. They live up to their promises and are always willing and able to make quick adjustments and really go the extra mile.’