Data preparation for modeling predictive analizes in the field of basic property insurance risks

This paper describes the process of preparing available data in the field of basic property insurance risks, in order to use it in the further researches for modeling the probability distribution of the occurrence of insured events that cause extremely large damages. The paper also describes a descriptive and exploratory data analysis on data set for the period between 2001 and 2011 on the territory of the Republic of Serbia. The purpose of data preprocessing is to reduce the amount of data to be analyzed, so as to improve the quality of the analysis. Process steps include data cleaning and that data transformation, in order to increase speed and prevent the domination of certain attributes in the application of algorithms for classification and clustering.