When insurance is simply a guessing game!
Throughout the last century, the significant majority (90%+) of general insurance products were distributed through intermediaries who represented the insurance company in front of the client. These were local agents or brokers and they influenced the pricing based on their assessment of the risk directly with the customer.
For the insurance carriers who sat behind the intermediary, their focus was two-fold: fine tuning their underlying actuarial risk models; and managing the claims process cost effectively. The two areas of focus were interlinked with the claims history fed back into the actuarial models to refine the risk assessment for the different classes of business being covered.