The insurance trend analysis is a means through which risks are assessed that are associated with certain insurance policies. This is a technique that is used by the insurance companies in order to foresee and predict the future events that can be associated with the insurance policy such as huge losses or failure to meet claims with premiums. This is a systematic process which takes into account various data and the different losses that have been suffered over a period time and try and find out some form or pattern that can be associated with the frequency of loss. This is also used to measure the severity of the loss.

The results that are found can be used for adjusting the previous projections that were established with the help of probability analysis. This analysis is effective in predicting losses and hence certain plans can be established which will help in recovery and overcoming the loss faced. This takes into account various economic, social and technological factors for the assessment.

Sample Insurance Trend Analysis

Name of Insurance Company: HYUI Insurance Ltd

Analysis by: 411 Insurance Analyzers

Dated: 15th June, 2012

Purpose: To determine the risks associated with the newly launched insurance policy.

Policy Overview:

Name of policy: Intensive Care Insurance

Date of launch: 5th January, 2012

Benefits offered:

  • ICU care for patients suffering from diseases as mentioned in the policy
  • All examinations and tests associated with the ICU care are covered
  • All above 59 years of age qualify for the prescription medication coverage

Risks associated with Insurance Policy:

  • Premium offered is too low to meet the claim settlements
  • The high risk diseases listed can lead to high losses for the company at the beneficiary’s death or during treatment
  • Lenient form of premium collection has been offered which can make it problematic in the future.

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