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Effective Price Modeling How to Discover and Implement Profitable Underwriting Factors - page 4 / 12

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Pricing Models

Micro models tell us where the specific rates need to change.

Help adjust discounts and surcharges

Can find new rating parameters, too (credit score, loyalty, claims free)

Good for transition markets when only some factors need adjusting

Used to make rating systems more dispersed, finer

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