Abstract: A method for optimizing insurance estimates for an insurance plan includes ascertaining the number of insured units to be covered by the plan, and obtaining premium quotes from an insurance carrier, the premium quotes corresponding to the number of insured units and to a plurality of cap levels of the plan. The method further includes obtaining statistical loss data for the insured units and applying the obtained statistical loss data to each of the cap levels.

Abstract: A method for optimizing insurance estimates utilizing Monte Carlo simulation includes the steps of ascertaining the total number of potential insured units and obtaining a quote for full insurance based on the total number of potential insured units. The method further includes creating a model of total costs of self insurance for the potential insured units, obtaining data distributions for all variables in the model of total costs of self insurance and running a Monte Carlo simulation on the model a preselected number of iterations. A range of range of possible total costs of self-insurance and the probabilities of such costs is then obtained facilitating a selection between full insurance and self-insurance.