Factors that affect the predictability of claims loss exposure include

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All of the options listed can affect the predictability of claims loss exposure. Unexpected increases in inflation can impact the cost of repairs or replacement of damaged property, while the frequency and severity of loss can affect the overall amount of claims that an insurer will have to pay out. Long-tail risks, such as asbestos-related illnesses or environmental damage, can make it difficult to predict when these claims will arise and how much they will cost. The type of coverage, whether it is property or liability, can also impact the types of claims that are filed and the amount of losses that are incurred.

Factors That Affect the Predictability of Claims Loss Exposure Include