Stat Data To Be Abbreviated
Several of the larger U.S. p-c companies rallied around a proposal that the National Council on Compensation Insurance and Insurance Services Office dramatically reduce the variety and volume of statistical data that is collected.
Implications for p-c insurers:
Increasingly, insurers will be using information from non-traditional sources, sampling techniques to assure the validity of the databases, and models to estimate and anticipate claims trends.
Companies that traditionally relied on bureau indications will beneficially realize the importance of analyzing the performance of their own unique book of business.
Lessened availability of benchmark prices is reinforcing the current trend towards insurance company specialization, and more insurers are declining to remain active in their marginal markets and products.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, July 30, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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