LOSS RATIO ANALYSIS PROCESS

Created by ChecklistGuro (https://checklistguro.com)

[ ] Fetch Total Premiums: Retrieve all premium entries for the specified period from the Premium Data Model.
[ ] Fetch Total Claims Paid: Retrieve all claims paid entries for the specified period from the Claims Data Model.
[ ] Fetch Total Claims Outstanding: Retrieve all unpaid/reserved claim amounts from the Claims Data Model.
[ ] Aggregate Total Premium: Sum all premium entries to calculate the total earned premium.
[ ] Aggregate Total Claims Cost: Sum both paid and outstanding claims to determine the total incurred loss.
[ ] Calculate Loss Ratio: Execute formula: (Total Incurred Loss / Total Earned Premium) * 100.
[ ] Identify Variance: Calculate the difference between the current loss ratio and the target threshold (e.g., 60%).
[ ] Determine Threshold Breach: Logic check: If Loss Ratio > Target Threshold, return 'Breach'; else return 'Healthy'.
[ ] Create Analysis Record: Create a new entry in the 'Loss Ratio Reports' data model containing the calculated metrics.
[ ] Assign Investigation Task: If a breach is detected, create a task for the Underwriting Manager to investigate the spike in claims.
[ ] Notify Actuary: Create a task for the Actuarial team to review the data accuracy.
[ ] Send Executive Summary: Send an automated email to the CFO with the summary of the Loss Ratio results.
[ ] Generate Visual Trend Report: Generate a visual report comparing this month's ratio against historical monthly trends.
[ ] Update Risk Status: Update the 'Risk Profile' data model to reflect 'High Risk' if the loss ratio exceeds a critical limit.

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