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How to improve price loss ratio with better industry classification

Price loss ratios are used to measure how well an insurance company is doing in relation to its claims. The ratio calculated by dividing the net incurred losses by the premium, without adding in any taxes or fees. A low ratio indicates that a segment is doing well, but that only tells part of the story. Our market research shows that industry classification is broken in insurance, leading companies to pay claims that can affect a company's profitability and hurt long term profit ratio. Paid claims are also increasing according to audience insights in the insurance industry.

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