In 2006, the Private Passenger Auto Insurance industry lost
$16.6 billion due to premium rating error. This estimate is based
on nationwide premium audits conducted by Quality Planning
Corporation. Premium rating error represents 10% of a total $166
billion in personal auto premium written. Without action, insurers
will continue to lose billions more over the coming years - all due
to premium leakage that could be stemmed if appropriate action were
taken.
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