THE TOPIC
APRIL 2006
When a person applies for insurance, insurers need to be able to assess the risk of loss. One way to do this is to look at the applicant’s claim history. Insurers have been using loss histories as a primary underwriting and rating factor for decades. Before computers were used to store data, insurers had to rely on information from the applicant for insurance, his or her current insurers and on laborious searches of local records. Now they can have information almost instantaneously, saving time and money.