An insurance analysis is a term used for official assessment of the various factors namely the needs, risks and gaps associated with the insurance policies. The factors are not proportionate for all since they change invariably from one person to another through the different stages of one’s life. The variables related to the person juxtaposed with the variables related to the insurance company are a critical area and this is studied through proper observation and stochastic understanding of the data available. Only when the study is complete we can come to a valid conclusion regarding the analytic finding.

The important criteria validating the analysis are as follows:

  • The study should be conducted on the basis of the factors and variables governing the insurance market and the insurance company.
  • The analysis should have a sound base considering the person for whom the insurance will be required. All the personal factors including his number of dependants must be also learnt.
  • The capital structure and estimating costs of the insurance company must be kept in mind while providing an interpretation of the analysis.

To raise the validity of the document, stipulations regarding the analyst, analysis and the basic company details should be enclosed in it.

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