BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit.
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Insurance companies use algebra and geometry to calculate the distance from clients’ major emergencies to nearest hospitals.
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Insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies.
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Insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit.
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Detailed explanation-1: -What role does math play in the insurance industry? Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit.
Detailed explanation-2: -Statistics is used to determine what risk an insured poses to an insurance company, what percentage of policies is likely to pay out, and how much money a company can expect to pay out in claims.
Detailed explanation-3: -Insurance mathematics studies the ways to manage risks to property or individuals. Insurance mathematics is used to better define and manage these risks. Life insurance protects individuals and other insurance protects property and businesses, reducing the financial impact of unforeseen events.
Detailed explanation-4: -Accurate Risk Prediction Insurance data analytics facilitates a better prediction of risk levels in the process of underwriting. The use of data analytics software identifies trends within data and can better link customer characteristics to their risk profile.