Question: Indigo INSURE DETAIL: You work for an institer , Indigo Insure, and have been tasked with developing an innovative instance that will cover building defects on new houses and commercial buildings Atining from the pyrite and mica problems in Ireland, your boss thinks that demand for an instance like the one proposed will have a strong latent demand. The policy will be called HOME PROTECT and will be available for houses bult after 2020 whether they are for ownet/occupiers of landlords also, builders may acquire the insurance and offer it in support of a construction guarantee The limit will be a maximum of Euro 100,000 on a single building It will protect against and will pay for the costs of poor workmanship, defective design or poot materials Information and data available to you includes: a review of 250 houses suggests a 0.05 chance of any construction having an issue (1) the sample suggests costs of tepair, adjusted for inflation, follow the pattern below. Lic, these are the only possible claim sizes) 25,000 25.000 25,000 38,000 38,000 69,000 80,000 100,000 Question 1 (a) statistically summatise and comment on the claims information provided and determine a basic premium (m) looking at the indicated frequency tate, how confident are you that this is reliabler (b) it in anticipated that 600 insurance will be sold in a year find the total tisk premium (1) find the standard deviation (1) assuming 20% is added to the total tisk premium for costs, what is the probability of incurring total losses beyond 2,000,000, hence what is the likelihood of having three such years in five (c) find the cost of a stop loss reinsuring beyond 40 losses (d) Asuming only a total loss for 100,000 can ocent, and that a policyholder has a 100,000 policy limit, where the utility to house value is UE VV, what is the maximum premium that can be charged? Question: Indigo INSURE DETAIL: You work for an institer , Indigo Insure, and have been tasked with developing an innovative instance that will cover building defects on new houses and commercial buildings Atining from the pyrite and mica problems in Ireland, your boss thinks that demand for an instance like the one proposed will have a strong latent demand. The policy will be called HOME PROTECT and will be available for houses bult after 2020 whether they are for ownet/occupiers of landlords also, builders may acquire the insurance and offer it in support of a construction guarantee The limit will be a maximum of Euro 100,000 on a single building It will protect against and will pay for the costs of poor workmanship, defective design or poot materials Information and data available to you includes: a review of 250 houses suggests a 0.05 chance of any construction having an issue (1) the sample suggests costs of tepair, adjusted for inflation, follow the pattern below. Lic, these are the only possible claim sizes) 25,000 25.000 25,000 38,000 38,000 69,000 80,000 100,000 Question 1 (a) statistically summatise and comment on the claims information provided and determine a basic premium (m) looking at the indicated frequency tate, how confident are you that this is reliabler (b) it in anticipated that 600 insurance will be sold in a year find the total tisk premium (1) find the standard deviation (1) assuming 20% is added to the total tisk premium for costs, what is the probability of incurring total losses beyond 2,000,000, hence what is the likelihood of having three such years in five (c) find the cost of a stop loss reinsuring beyond 40 losses (d) Asuming only a total loss for 100,000 can ocent, and that a policyholder has a 100,000 policy limit, where the utility to house value is UE VV, what is the maximum premium that can be charged