WHAT DOES THE DOUBLE-WHAMMY REALLY MEAN?
When insurers remove the double-whammy effect, they are able to price right and potentially accept more of the good risk that they today do not accept, which would increase both their revenue and their combined ratios They can also provide a lower cost option for good risks–say, safe commercial truckers–that need all the help they can to weather the economic storm. And carriers can create a competitive differentiation using insights from their own data to drive decision making HOW IT’S DONE RIGHT The best approach to eliminating the double-whammy is to price your risk after first studying your rating factors and seeking to eliminate instances of overlap among them. For starters, begin with the following steps: 1. Review your statistical data. What is the severity and frequency of your book of business? Are the statistical records accurate and complete? If not, adjust or otherwise complete them to make sure the full picture is taken into account before starting. 2. Consider what your
