Insurance Contract Template
Description
This panel allows you to create a new contract or edit an already existing one. It consists of the following fields:
- Name: Each contract must have a unique (case sensitive) name. So a contract name "contract" and another one called "Contract" is fine.
- Line of business: Choose one of the following lines of business: Motor (default value), Property.
- Type of contract: Choose of the following types of contracts:
- Motor: Own motor damage (default value), Third-party liability.
- Property: Fire (default value).
- Policy term: Fixed at 12 months.
- Deductible (if any): some contracts can include a deductible. Choose a positive number.
- Cover: some contracts have automatic covers set to Actual Cash Value. This means that the cover (and thus the price of the contract) is dependent on the value of the object to be insured. For example, an Own Motor Damage type of contract covers the value of the vehicle in question. Other contracts have fixed covers which must be a positive number.
- Profit factor: choose a number between 0 and 100 representing the profit each contract makes on average. A profit factor of 0 means that, on average, the premium of the contract is enough to cover the claims over the duration of the contract.
- Price: this is the monthly price charged for each contract. For contracts with variable covers, this is an estimated price.
- Employees: select the number of employees that will be actively selling insurance contracts. On average, each employee will sell each month new contracts. This means that a higher profit margin will sell less contracts but at a higher profit each.
- Expected Yearly Premium: this is the expected premium collected each months from new insurance contracts. It is obtained as follows:This formula is obtained by multiplying the yearly premium each contract expects to generate (), multiplied by the number of employees, multiplied by the expected number of contracts each employee sells per month.
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