Insurance Pooling: How Insurance Companies Make Profit

Activity Description

In this interactive worksheet activity, students will unravel the inner workings of the insurance industry to understand how insurance companies generate profit. Students will analyze data related to average insurance premiums, the number of policyholders, and the percentage of claims filed under various car damages for a fictitious insurance company called - Insure X. They will calculate the total premium collected from the 10,000 customers, the money spent to resolve the claims and the total profit of the company.

This worksheet is a classroom-ready interactive and dynamic worksheet that just needs a few clicks to assign to your classroom. The worksheet is auto-scored, teachers just need to open the real-time console and monitor the student progress.

Learning Objective

Students will be better equipped to comprehend how insurance companies operate, make informed financial decisions related to insurance coverage, and recognize the factors that contribute to an insurance company's profitability.

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