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Insurance

Experience rating

Insurance rating is a method of determining the cost of insurance based on the insured's past claims. This means that the premium for future coverage is influenced by the insured's previous loss experience. This system allows insurance companies to accurately assess the level of risk and adjust premiums accordingly. It's a crucial aspect of the insurance industry, as it ensures fair pricing for both the insurer and the insured. Let's take a closer look at how this process works.
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