Insurance Contract Analytics
Overview
Most insurance contracts have the same basic structure. The contract collects fees on a certain frequency
(usually monthly) and pays out in the event that some pre-specified event has ocurred. For many contracts,
the event can be a recurrent event, meaning that it can occur more than once over the lifetime of the contract.
As an example, automobile insurance covers the customer in the event of a car crash, which could occur multiple
times for the same client. Some contracts, such as life insurance, insure events that can only occur once.
Breakdown
The typical way to think about an insurance contract is to model it as two different distributions.
