Insurance models are frameworks that help companies assess risk and determine how to price their insurance products. These models analyze various factors, such as historical data, demographics, and market trends, to predict the likelihood of claims. By understanding these risks, insurers can create policies that are both affordable for customers and sustainable for the company. There are several types of insurance models, including actuarial models, which use statistical methods to evaluate risk, and predictive models, which leverage data analytics to forecast future claims. Each model serves a different purpose, helping insurers make informed decisions about coverage and pricing strategies.