- The customer is officially registered as a participant in the insurance program after signing an agreement which is translated into an insurance policy.
- Customers registered with the insurance program are required to pay a premium. All premiums from customers will be included in the insurance pool. A new member or an old member has the same status, that is, the insurance company promises to be paid an amount of money if the insured loss occurs, as long as the premium they are liable for has been paid.
- Joining an insurance program is like buying big money for small money. This means that risks can occur at any time. It could be that you just joined the insurance program yesterday and today there is a risk so you can claim. This is the advantage that can be obtained from the insurance program.
- The insurance company will consider every risk of the product that is carried out by conducting data collection and making it in the form of risk statistics which contain:
- The prediction of the number of people who will actually file claims in a period. Insurance companies must be smart in estimating the number of people who will experience losses in the first year, the following year, and so on.
- Prediction of the number of customers who do not claim in a period so that the insurance company can pay claims that are far greater than the premiums received from policyholders.
- Detailed customer information statistics so that they can be grouped according to risk characteristics to calculate the premium level based on the risk group. The term is a classification of risk or underwriting. By charging a premium according to risk, insurance companies can act fairly to all policyholders.
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