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Building Happy People w/AI | Polymath | Super Connector | Board Advisor | Sales Leader | Whatever's Needed | Patent for Pricing Personal Lines Risks w/AI

The article should have been titled "Why actuarial expertise is now low key for insurers". If you are an auto MGA or carrier in California and you had combined ratio that averaged under 96% the last 3 year then you get it. Others who don't have a combined ratio under 100 appear to grasping at needles in a haystack. Why? One reason is actuarial expertise appears to be grounded in flawed principles. Historically we've calculated premiums based on data assumptions. If a man has drivers license for 20 years he must be a better driver than man with license for 2 years. That could be correct. But it could also cause you to run in the red. Every company know that a "me too" filing doesn't guarantee "me too" profitability. Having a better understanding of the risk and pricing it appropriately can. Actuarial expertise incorporates a deep understanding of our industry. It should also be grounded in a deep understanding of consumer you are serving. The integration of data science will hopefully can take insurers from insurance dinosaurs. The article doesn't really explain how. They would like you to spend money with the article's sponsor to get any real insight. How can change your destiny from a future similar to dinosaurs of the past? Learn how to improve every touchpoint with AI. Learn how to increase employee engagement with AI. How do we start? Examine workflows. Examine high frequency communication with policy holders. Remember everything is a data point, but not all data provides insight. Actuarial expertise is framed in 20th century experience. The chart below was taken from a study done last year by Statista. We have way too much to process each day. Improve your team's ability to impact your organization you will improve your ratios. Improve your client experience you will improve your ratios. Despite some opinions, you can't control severity. You can however use AI to dynamically improve your modeling without the need to constant rate filings.

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