Actuarial Risk

Actuarial Risk

The possibility that an actuary's assessment of a potential policyholder's risk may turn out to be incorrect. For example, if an actuary is using statistical models and determines a policyholder is likely to live for another 30 years, there is an actuarial risk that the policyholder will die tomorrow. This would result in a large loss for the insurance company. Actuaries work to improve their statistical models to minimize actuarial risk. See also: Actuarial analysis.
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ACTUARIAL RISK PREDICTION AND THE MOVEMENT TOWARD EVIDENCE
An actuarial risk analysis concludes that because there have been so few attacks on control systems, there is little likelihood of such attacks in the future, justifying no additional protections.
First, actuarial risk, which is the traditional understanding of risk that is more or less quantifiable by technical experts.
In general, the ability to provide solid actuarial risk analysis can also help accelerate societal progress by making possible the development and introduction of new technologies and products that otherwise might be considered uninsurable and too risky.
States have used this reasoning to resist AWA adoption, contending that existing classification methods, which are based on actuarial risk, would provide a better means of ensuring public safety.
In response to this need, the Society of Actuaries (SOA), the Casualty Actuarial Society (CAS), the Canadian Institute of Actuaries (CIA), the Enterprise Risk Management Institute International (ERM-II) and the International Network of Actuarial Risk Managers (IN-ARM) published a series of essays, "Risk Management Part Two-Systemic Risk, Financial Reform, and Moving Forward from the Financial Crisis," which addresses financial regulation post-recession and highlights the need to develop accurate warning indicators and reform measures to prevent the realization of systemic risks in the future.
Noting that criminology usually focuses on male offenders, she presents findings from a mixed method study of offenders of both sexes and the use of actuarial risk and need assessment instruments in the correctional system.
In a study of 335 women with breast cancer, the actuarial risk of local disease recurrence at 10 years was 5% for women with the lowest breast density, 13% for those with intermediate breast density, and 21% for women with the highest breast density, said Dr.
After the three authors provide an overview of how to use high-quality research to improve the practice of child protective services, other experts explore areas that identify young maltreated children with developmental delays, intimate partner violence in the child welfare system, actuarial risk assessment, the current status of practice and opportunities for improving parent training for families in child welfare.
And he added: "I also have very strong views about the actuarial risk assessment techniques which are used to analyse offenders.
According to the report, one of the studies suggests tying the premium rate to loss ratio, "thereby rendering the rates more likely to mirror the actuarial risk incurred by the title insurer.
The controversy is related to the use of statistically based actuarial risk assessment (based on static, non-changeable factors such as number of offenses, age of first offense, gender of victim, etc.