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An OR event can impact many aspects of an insurance company’s operations, particularly claims and expense experience. It is not easy to separate out how much of the experience variations are as a result of OR events.
? It is not always easy to identify what the impact is or has been once an OR event has been identified. Therefore the data that one might want for rigorous statistical analysis and modeling of OR is not currently available and in some cases never will be.
? Applying quantitative approaches, therefore, can be highly false, and one needs to evaluate the results accordingly.
? In practice OR may be assessed outside the Actuarial function...
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