Speaking of System Noise in the Insurance Company “We depend on the quality of professional judgments, by underwriters, claims adjusters, and others. We assign each case to one expert, but we operate under the wrong assumption that another expert would produce a similar judgment.” “System noise is five times larger than we thought—or than we can tolerate. Without a noise audit, we would never have realized that. The noise audit shattered the illusion of agreement.” “System noise is a serious problem: it costs us hundreds of millions.” “Wherever there is judgment, there is noise—and more of it
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