In the standard solution, insurers count closely on historic data, that may in some cases bring on outdated hazard assessments. This technique also has a tendency to be a lot more reactive than proactive, generally changing costs only right after considerable market place shifts or statements encounters.
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Although the rate of AI improvement normally outstrips regulatory steps, the use of AI in pricing should adjust to current legal laws. Insurers will need to consistently keep an eye on regulatory improvements to make certain whole compliance with legal expectations.
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