About the assignment

The data are per event, i.e., an entry per catastrophe day. The distribution of claims is therefore the distribution of a claim payout on a randomly selected catastrophe day. You are supposed to produce an estimate for next year's catastrophe claim payout. In order to do this you need to estimate how likely it is, on average that a catastrophe occurs on any given day. Then you multiply this likelihood with the number of days in a year. This product is multiplied with the expected payout from a randomly selected catastrophe day. The product of these three numbers will then be an estimate of the next year's catastrophe risk premium.