What is an insurance -matical modeling?
insurance -matematic modeling is the name of a set of technicians used in the insurance industry. These models consist of equations that represent the functioning of insurance companies, which is the probability of events covered by policies and the costs that every event represents society. They help companies to decide which politicians need to be taken and set premiums on the basis of planned claims that they will have to pay. They are important because insurance companies use them to maintain companies; Models predict resources that companies will have to pay off, so they know how much money they have to accept to cover their costs. The Company accepts payments called bonuses in exchange for a guarantee that it will provide the policyholder of some of the specified events. In fact, all policyholders divide the costs of events that occur in each ZaIOD so that no one will have to pay for the entire cost. Mathematics use scientific approaches thatThey combine probability theory, economic theory and other disciplines. They use behavioral assumptions derived from these theories to create equations systems that represent events that occur in the real world. This practice is called insurance -matematic modeling.
Two basic types of models used in the insurance --matematic modeling are deterministic models and stochastic models. Deterministic models are easier of these two and were the first to be used. They use probability estimates for each event and predict the number of events that actually become based on these estimates. Stochastic models allow further running, but require more computing forces. The computer simulates events for hundreds or a thousand times and predicts how many events will happen.
The type of model used is very important if the insurance premiumThe mathematician has no good information about the events he predicts. In mathematical modeling, the probability of every event and equation that describes people's behavior is essential for the success of the model. Mathematics are constantly revising models to provide better predictions.