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The Insurance Times
gender-marital status, (b) use, (c) geography, and (d)
others.
131. Cost differences can be classified into four broad
categories: (a) use of the automobile, (b) driving ability,
(c) interaction with the claims mechanism, and (d) the
extent of damages.
132. The reason for classification systems is the variability in
costs from one insured to another. The key to measuring
efficiency an understanding this variability. Costs vary
because claim frequency varies and because claim sizes
vary.
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