Monte Carlo simulation MCS

{
  "id": "MLC-T-INS-002222",
  "term": "Monte Carlo simulation MCS",
  "field": "Insurance and risk management",
  "definition": "A computational technique that uses random sampling to model the probability of different outcomes in a process that cannot be easily predicted due to the intervention of random variables. In insurance and risk management, it is applied to assess risk, price complex financial products, and evaluate the solvency of an insurer. The simulation generates numerous possible scenarios to estimate a range of potential results and their likelihoods.",
  "url": "https://mlchart.com/terminology/insurance/monte-carlo-simulation-mcs/"
}