Actuary

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Actuary

A statistician who computes insurance and Pension rates and premiums on the basis of the experience of people sharing similar age and health characteristics.

The profession also includes statisticians who provide expert data analysis on risk assessment and risk management for the financial services sector. Actuaries are most often employed within the insurance industry, but also prepare and assess data for commercial and investment banks, retirement and pension fund administrators, or are self-employed as consultants. Specific data prepared by actuaries is often presented in the form of actuarial tables (mortality tables) that indicate the life expectancy of an individual. Such tables may be used as the bases for calculating estimated insurance premiums or monthly retirement annuities. When utilized by expert witnesses, actuarial tables are admissible in evidence to show life expectancy. Juries may award damages to plaintiffs for compromised life expectancy resulting from the alleged wrongdoing of tortfeasors (wrongdoers).

ACTUARY. A clerk in some corporations vested with various powers. In the ecclesiastical law he is a clerk who registers the acts and constitutions of the convocation.

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(i) the equilibrium in the private insurance market is socially optimal if the price of the insurance is actuarially fair ( P = [pi]);
(6) Yaari's (1965) work established that, in the presence of actuarially fair versions of these markets, with information about the probability distributions of future lifetimes available as public information, a risk-averse individual with no bequest motive would hold his assets (liabilities) as a life annuity (life insurance).
Section 3 presents the assumptions and the models adopted to calculate the actuarially fair social security rates.
The Third Circuit found that since no minimum term was explicitly set by law, it was reasonable to conclude that any term less than full life expectancy would still be considered actuarially sound.
Now, in efforts to become more actuarially sound, FEMA is eliminating use of subsidized rates when there is a coverage lapse.
Proposition 1: With no liquidity constraint and no risk of insurer default an agent faced with actuarially fair insurance will choose full coverage (kt - 1).
The court held that an annuity is only required to be actuarially sound in a way that ensures the term will not be longer than the life expectancy of the annuitant.
The court held that there is no minimum term requirement for an annuity to be actuarially sound--instead, it is only required that the annuity be actuarially sound in a way that ensures the term of an annuity will not be longer than the life expectancy of the annuitant (as determined by the Social Security life expectancy tables).
They presented the survey participants with various financial scenarios and attempted to gauge how they might react to different financial incentives, including getting actuarially fair lump sum payments if they delayed claims for monthly Social Security checks when they hit various program retirement ages.
The number of uninsured will surely increase because of the cancellation of many otherwise acceptable plans, because the costs of health exchange policies will go through the roof due to optimistic and actuarially unsound assumptions, because many companies will drop coverage, and because behavioral and economic disincentives will discourage the young and healthy to sign up.
insurance company's policies to remain actuarially sound, it must
It is now well established in actuarial insurance theory that a risk-averse expected utility maximizer will never purchase full insurance coverage if the insurance premium is actuarially fair in conjunction with a positive proportional loading factor to cover administrative expenses and the insurer's profit (e.g., Arrow (1963, 1971, 1974), Mossin (1968), Smith (1968) and Raviv (1979)).