A Balancing Act – Best's Review
Homeowners writers strive for underwriting efficiency without sacrificing reliable replacement-cost estimates.
- At Issue: Insurers are challenged by deciding how much data to collect to ensure properties are adequately insured.
- The Situation: The need for efficiency is important because insurers face competitive pressures to underwrite policies.
- The Significance: After analyzing total-loss claims across the United States, researchers found that the more building attributes used, the more reliable the replacement-cost estimate.
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