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Article: Making Sure the Price is Right; The use of predictive modeling is helping underwriters solve the pricing puzzle in the highly regulated, multi-dimensional workers' compensation environment.(INN Focus-WOrker's Comp - In-depth coverage of issues affecting specific lines of business)
- Article from:
- Insurance Networking News: Executive Strategies for Technology Management
- Article date:
- October 1, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Pat Speer
Challenges are growing as many commercial lines insurers face economic pressures and increased regulatory requirements. In a business world where many factors are out of insurers' control, in order to remain competitive, they are well advised to understand the types of risks most appropriate for a specific product set, and price those risks accordingly. In some cases, this results in a carrier turning down business that is not profitable, or even exiting an entire market that is not performing as expected.
So how do they know what they know? How do they identify, segment and price risks in such a way as to consistently improve loss ...