I. Introduction
The term “risk” is used in the insurance sector to refer to the hazards that are covered by policies sold by the company. Applicants for insurance are categorised into a number of different groups according to their risk profiles in order to establish the level of severity of the risk. This risk assessment is applicable throughout the entirety of the insurance sector, including but not limited to policies pertaining to health, travel, property, and automobiles, among others. The insurance industry places a significant amount of importance on risk assessment as a means of classifying prospective clients into the appropriate categories. The underwriting staff thoroughly assesses each applicant's risk profile and places them all into one of several established risk groups based on their findings. The word “risk classification” is used in the insurance industry to refer to the process of classifying policyholders in accordance with the level of risk they pose based on historical information. Claims are evaluated by insurance companies using a range of criteria, some of which include the applicant's age, gender, health status, smoking status, drinking habits, occupation, medical history, and the amount of coverage that is being sought [1].