How does the applied math relate with the insurance field Assignment

How does the applied math relate with the indemnification field - Assignment ExampleFor example, when buying or selling an insurance policy, it is important for the two parties to understand the risks involved. These risks argon hit the booksd, and their impact evaluated. This helps in determining the actual amount of the policy and the terms of payment.Secondly, mathematical techniques are used in analyzing utility curves. These curves are useful in determining how much a consumer is going to buy insurance for (Green, 96). In normal cases, the insuring steady has to charge the guest a fee more than the value of the risk. The utility curves thus help the insurance caller-up determine the exact amount the customer is going to pay for the insurance. For example, if a consumers average loss per year for repairing his car is $10000, then the insurance company has to charge a fee to a higher place this figure for the insurance. This can only be achieved if mathematical techniques ar e used so as to calculate the actual profit percentage that the insurance company will charge.Thirdly, the insurance sector heavily relies on commercialize research in the development of the various policies and understanding of the existing ones (Green, 97). Market research helps the insurance firms understand the best policies that will satisfy the demands of the market. For example, a company might want to study the market potential before developing a sassy insurance policy. In order to avoid losses, the company needs to have accurate information about the market. Mathematics is heavily applied in market research. For instance, random sampling can be employed by the insurance firms to understand various phenomenons in the market. In order to effectively collect, organize and analyze such data, mathematical techniques are required for accuracy. In particular, statistical methods are used in marketing research where variables such as standard variance and variance help in the a nalysis of the collected data.Finally, applied mathematics is useful when it