This model demonstrates the use of the Insurance element. The Insurance element simulates claims against an insurance policy. You must specify the properties of the insurance policy (the deductible, the cap, and when these are reset), and then you specify one or more discrete claims. The key outputs are the cumulative covered and uncovered losses for the claims.
The plot below shows a result of the insurance policy if the deductible and cap are reset each calendar year.
In this example model, each container holds an insurance element that is subject to the same claims in all four containers. Each Insurance element has the same deductible and cap, but the deductible and cap is reset at different times (after each claim, annually, after two years, and never).
Below is a comparison of mean coverage using these different reset options.
To Open the Model File:
- Start GoldSim
- Click on the File and select Open Example...
- Browse to General Examples --> Financial Examples
- Select the file called Insurance.gsm