Using machine learning to determine rate changes and achieve greater profitability is a grand slam for insurance carrier business. (Urupong/Adobe Stock) Using machine learning to determine rate changes and achieve greater profitability is a grand slam for insurance carrier business. (Urupong/Adobe Stock)

For many U.S insurers, particularly smaller and midsize ones, the standard approach to rate changes is to assess various rate scenarios and select the one that best supports business objectives while heeding regulatory requirements. This approach usually does not incorporate a sophisticated view of how a customer would react to the various scenarios.

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