Tiered Rating Systems Catch On With Carriers

Chubb Corp. is the latest company to begin integrating a new tiered underwriting system into its personal lines risk assessment programa process that some consumer advocates contend can be used to skirt the regulatory rate approval process.

However, it is also one that analysts and other industry observers assert will ultimately determine who will succeed and who will, in the words of one executive, "slowly whither away through many cycles of adverse selection, and eventually cease to exist as a business entity."

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