When we talk of insurance, we normally associate the activity with loss reduction methods that companies employ and the size of insurance normally is related to the types of losses and expected size of losses. But few of us realize that taking insurance is not a simple exercise. It involves extensive review and mapping of past losses to the loss types, the types of insurance covers available in the market and the level of insurance required to be purchased. The premium or commercial terms is the last thing to be considered. A good risk management framework requires companies to aggregate past losses into various buckets, evaluating how many of these losses were insurable, how many were insured, of those that were insured, for what amount was the claim filed and finally of the claims filed, how much was received from insurance. As we can see, there are various data points in the insurance claim life cycle. All data points required quantitative data for a good insurance program to work.