🎬 How does your insurer calculate your home or car insurance premium?
How does your insurer calculate your home or car insurance premium? 🤷
We asked a sampling of people on the street → check out their amusing answers in the video below:
In most cases, the insurance premium is based primarily on how risky the policyholder is, that is to say how costly they will be for the insurer. For example, an experienced driver will be considered less risky than a driver who got their licence six months ago: their premium will probably be lower.
Who calculates these risks?
Actuaries are in charge of evaluating, modeling and managing risk for insurance companies, pension funds and banks. They have a strong mathematics, statistics and actuarial science background. One of their responsibilities is to set the premiums for a given insurance contract by using statistical methods to assess the associated risk.
How can Akur8 help actuaries to calculate pure premiums?
Akur8’s Transparent Machine Learning allows actuaries and pricing teams to build highly predictive models in record time, while maintaining full transparency, auditability and control over the models created: the whole modeling process is automatically documented, and the output of the models is entirely transparent and adjustable.