loss estimation models

Loss estimation models are tools used by insurers and risk managers to predict potential financial losses from events like natural disasters, accidents, or other risks. They analyze data such as historical claims, environmental factors, and asset values to estimate the likely size and frequency of future losses. These models help organizations plan for possible financial impacts, set appropriate premiums, and develop strategies to mitigate risks. Essentially, they act as sophisticated forecasts, combining various data sources to give a clear picture of expected losses, enabling better decision-making and risk management.