Configure the Pet Formula

The PetFormula is used to determine the premium amount for a pet insurance product. This formula takes into account various factors such as coverage, age, breed type, excess amount, and insurance premium tax. The calculation is performed by retrieving relevant data from specific datasets and applying the appropriate factors.

The formula uses the following components:

• Base Rate (baseRate): The base rate represents the fundamental rate for the pet insurance policy. It is obtained from the PetProtect_BaseRates dataset using the following parameters:

  • Coverage: The type of coverage provided by the insurance policy;

  • cardName: The name of the insurance card;

  • petType: The type of pet being insured.

  The calculation is given below:

  baseRate = DataSet("PetProtect_BaseRates", ("Coverage", coverage), ("cardName", cardName), ("petType", petType));

• Age Factor (ageFactor): The age factor accounts for the age of the insured pet. It is obtained from the PetProtect_Age dataset using the following parameters:

  • Age: The age of the pet;

  • PetType: The type of pet being insured.

  The calculation is given below:

  ageFactor = DataSet("PetProtect_Age", ("Age", age), ("PetType", petType));

• Breed Type Factor (BreedTypeFactor): This factor considers the breed type of the insured pet. It is obtained from the PetProtect_BreedType dataset using the following parameters:

  • BreedType: The breed type of the pet;

  • PetType: The type of pet being insured.

  The calculation is given below:

  breedTypeFactor = DataSet("PetProtect_BreedType", ("BreedType", breedType), ("PetType", petType));

• Net Premium (NetPremium): The net premium represents the calculated premium amount before including the insurance premium tax. It is computed by multiplying the following factors:

  • BaseRate: The base rate obtained from the dataset;

  • AgeFactor: The age factor obtained from the dataset;

  • BreedTypeFactor: The breed type factor obtained from the dataset;

  • A value obtained from the PetProtect_Excess dataset using the parameter:

  • ExcessAmount: The excess value for the insurance policy.

  The calculation is given below:

  netPremium = BaseRate*AgeFactor*BreedTypeFactor*DataSet("PetProtect_Excess", ("ExcessAmount", excessValue));

• Gross Premium (GrossPremium): The gross premium is the final premium amount after incorporating the insurance premium tax. It is calculated by multiplying the net premium (NetPremium) with a value obtained from the PetProtect_IPT dataset.

  The calculation is given below:

  grossPremium = NetPremium * DataSet("PetProtect_IPT");