Factors that affect the predictability of claims loss exposure include

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All of these factors can affect the predictability of claims loss exposure. Unexpected increases in inflation can impact the cost of settlements or repairs. The frequency and severity of losses can impact the financial impact of these events. Long-tail risk refers to claims that may not be reported until years later, such as for asbestos exposure, which can impact the predictability of future claims. Lastly, property and liability coverage can have different risks and potential losses.

Factors That Affect the Predictability of Claims Loss Exposure Include