V2C and V2I for Insurance Models

The Insurance Prediction Tracker is a simulation-based system designed to evaluate the Value to Customer (V2C) and Value to Insurer (V2I) in a dynamic insurance environment. The system uses input generated from a Google Sheets document, which defines various personas with parameters such as age, income, trust levels, and probabilities of minor, moderate, and major claims. These personas represent different customer profiles, providing the foundation for the simulation. At each simulation step, the system calculates claim probabilities and determines their impact on V2C and V2I using complex formulas that consider expected claim cost, utility of coverage, risk reduction utility, trust factor, and income factor.

As the simulation progresses, the system tracks how claims affect both the customer and the insurer. V2C reflects the value customers receive from reduced risk and financial support, while V2I ensures the insurer maintains profitability by balancing payouts against premiums and risk. The system also monitors customer satisfaction through a retention rate, ensuring that V2C remains positive and grows over time. This retention rate serves as a measure of whether customers are likely to stay with the insurer, providing a key indicator of loyalty and success. At each step, detailed logs and visualizations are generated, offering insights into trends, claim events, and the evolving dynamics between customer satisfaction and insurer profitability. This framework ensures a balanced and adaptable approach to evaluating insurance value while maintaining a focus on actionable insights for decision-making.