- Describe how data generating events can produce data of interest to insurance analysts.
- Identify the type of each variable.
- Produce relevant summary statistics for each variable.
- Describe how these summary statistcs can be used in each of the major operational areas of an insurance company.
Let us illustrate the kind of data under consideration and the goals that we wish to achieve by examining the Local Government Property Insurance Fund (LGPIF), an insurance pool administered by the Wisconsin Office of the Insurance Commissioner. The LGPIF was established to provide property insurance for local government entities that include counties, cities, towns, villages, school districts, and library boards. The fund insures local government property such as government buildings, schools, libraries, and motor vehicles. The fund covers all property losses except those resulting from flood, earthquake, wear and tear, extremes in temperature, mold, war, nuclear reactions, and embezzlement or theft by an employee.
The property fund covers over a thousand local government entities who pay approximately 25 million USD in premiums each year and receive insurance coverage of about 75 billion. State government buildings are not covered; the LGPIF is for local government entities that have separate budgetary responsibilities and who need insurance to moderate the budget effects of uncertain insurable events. Coverage for local government property has been made available by the State of Wisconsin since 1911.
You can learn more about the property fund at the Wisconsin Property Fund site.