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the Top Inefficiencies
in Ratemaking



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Since the ultimate cost of their services is unknown when the contracts are signed, insurers can face the uncertainty of not knowing, in advance, how much they must charge, while nevertheless remaining bound by the twin requirements of profitability and competitiveness. A pricing Analytics solution can be used to mitigate the risk inherent in pricing insurance products. This article outlines three important characteristics of a pricing Analytics solution that, if considered from the outset and integrated into its fabric, will help any insurer steer it towards success in setting optimal prices.

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