But this undermines the very purpose of premiums: pricing risk, as determined by market signals.
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Without knowledge of the future, I can reduce my pricing risk by dollar-cost averaging my investment.
Pricing risk correctly remains the biggest problem, as Lloyd's continues to undercut competitors' prices for insuring exotic risks.
Yet markets could be dramatically under-pricing risk, particularly if the Italian populace is forced to return to the polls.
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Insurance brands are in the business of clearly defining and then pricing risk.
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Throughout history, in the process of pricing risk and protecting against loss, insurers have done a lot of good things.
Its aim was to trade a relatively stodgy business of understanding and pricing risk for one that helped to reduce it.
Still, it will be a long time before the region has meaningful markets that do a good job of mobilising savings and pricing risk.
Identifying them and pricing the risk they represent are a challenge, but it can be done.
Gretchen Morgenson complains that Fannie Mae and Freddie Mac did a lousy job of pricing mortgage risk.
But it would also undermine the efficient pricing of risk by providing insurance, after the event, for risky behaviour.
Restraint is all the harder because, unlike in other businesses, insurers only find out years later, when claims are settled, just how inaccurate was their pricing of risk.
They claim to bring the pricing and risk management strategies of the financial commodities markets to cloud computing via revenue-generating services that add convenience and value to the cloud user.
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In any event, Elizabeth Warren has made a pretty powerful case that the private sector has also done a lousy job of pricing mortgage risk. (Go to this video and check it out around 1:42).
By taking these securities off the open market, the Fed inhibits the capital markets from fulfilling their function of appropriately pricing and dispersing risk.
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The risk pricing component of this transaction would be thoroughly privatized.
Because driverless cars have no track record, the biggest challenge for car insurance companies will be measuring risk and pricing policies accordingly.
Dennis Roche, president of Access Sports Media, which operates screens hanging in the concourse of 47 professional sports arenas, said he is willing to risk some pricing erosion to get more dollars from ad categories that wouldn't necessarily buy space on his firm's screens.
While our base case scenario envisions pricing declines to level off due to the growth of the smartphone segment that should offset the downward pricing pressures, we assess the downside risk here in the event that the current rate of pricing declines continue into the future.
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Traders pushed prices up on their perceptions of geopolitical risk and the pricing in of easing expectations.
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Under the law, small businesses' health plans would have to cover a range of required benefits and face pricing rules that spread the risk of costly medical bills.
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Our research indicates that insurers surveyed recognize the importance of risk analytics for a range of business processes including investment selection, risk selection and pricing, fraud management and loss reserving.
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This "risk-based pricing" means that if you treat your body like a temple you pay less for health care than your counterpart who overeats and smokes a pack a day.
For an industry that's been struggling to fend off increasing competition from the growing wine and spirits businesses, the results indicate "an increased risk that new pricing will stick in February, " Swartzberg said.
That starts with creating a consumer-credit culture in the first place, plus many of the things lenders take for granted in North America, like individual credit histories, and finely tuned risk-based pricing where the riskiest customers pay the highest interest rates, to cover expected losses.
The better approach, argue the authors, is to use risk analysis and correct pricing to encourage market apportionment of environmental costs.
Financial services is probably the least connected to the university, but many of the disciplines embedded there, like risk analysis and options pricing, have application to other verticals.
For their part, hospitals have to weigh whether discounts they grant for exchange products pose a risk to the richer pricing they get for traditional commercial health plans, which include those now offered by employers.
Franchisees who aren't deemed in good standing by the franchisor risk receiving less-favorable pricing for equipment and supplies, and missing out on expansion opportunities, he says.
Risk-based health insurance pricing is not all sunshine and rainbows.
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