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Old 11-28-2017, 04:53 PM
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Anyways, what spurred the thought was that I listened to a keynote speaker at a conference make some pretty ambitious claims about how AI would drive the expense and loss ratios down to something really low, like 2%. I thought there was no way that could be true, and that the combined ratio (whatever the loss and expense components may be) will hover at around 100% as long as insurance exists and the market remains competitive.

I do agree that loss control can be improved, that advancements in risk adjusting can keep existing claims from blowing up, and that technology can make insurance less expensive to write - resulting in a more efficient risk transfer for the insured. But I really doubt insurers will be earning profits north of 90%.
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