Explain how statistics is used to formally define risk

Reference no: EM133214614

Assignment - Measuring Risks Essay

Description - You will assume the role of a senior analyst hired by a fictitious company, Premium Acceptance, a midsized property insurance carrier. Premium Acceptance is performing well with respect to several key performance indicators, including policies in force, policy retention, and new business counts.

One of your objectives as the newly appointed senior risk analyst is to develop a framework for managing loss ratios which is one of the firm's largest key performance indicators. A loss ratio is simply the difference between the ratio of claims paid by an insurance carrier and the ratio of premiums paid. The board of directors depends on the ability to forecast loss ratios, which in turn enables them to forecast profitability metrics to the shareholders. The organization will now consider implementing the use of statistics for measuring risks.

Your deliverable should be composed as a report. Be sure to address the following items:

Explain how statistics is used to formally define risk in the risk assessment process.

Discuss at least two statistical tools that can be employed to measure risk.

Convey which tool best serves the company's purposes and explain why it is.

What are the ramifications of the organization electing not to use statistics in this process?

Reference no: EM133214614

Questions Cloud

Let account be the bank account class discussed in the class : Let Account be the bank account class discussed in the class. What balance will be stored in acct1, acct2, and acct3 after the following statements have been ex

Write a paper on how the states compare to each other : Use data on the above 6 variables collected by you to write a paper on how the 6 states compare to each other and which of these states would you rather live

Simple to-do list application : A simple To-do list application. The model would be the code that stores the To-do list items. The view would be the code that displays the To-do list items to

Create an application named grade whose main method : 1. Create an application named Grade whose main() method holds one string variable to hold your name. Accept the name from user. The application has two other m

Explain how statistics is used to formally define risk : Explain how statistics is used to formally define risk in risk assessment process. Discuss at least two statistical tools that can be employed to measure risk

Write a javascript function to add the books : Write a JavaScript function to add the following books in the library collection for author John Grisham. The number in the parentheses is the year of publicati

Make a program to make a class called shapeobject : make a program to make a class called ShapeObject and this class contains the below,

Discuss plans for upholding four aspects of professionalism : Discuss your plans for upholding the four aspects of professionalism-sense of identity, purpose to engage in DAP, commitment to ethical teaching

Number of check-in persons should be less : The booking webpage asks customers to fill in a booking form that collects a series of customer information including customer name, email address, phone number

User Account

All Pages