Auto insurance writers lost an estimated $16 billion of premiumrevenues in 2004 due to inaccuracies in rating information,according to a new study published by Quality Planning Corp. in SanFrancisco.

The figure represents an increase of $800 million over 2003, andabout 9.8 percent of the $163 billion revenue recognized bypersonal auto insurance premiums industrywide.

QPC Chief Executive Officer Daniel Finnegan said that for theaverage auto insurer, each 1 percent of rating error lossestranslates into a 20 percent reduction in profitability.

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