Actuarial Risk

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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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Industrial accidents may be more amenable to regulation because actuarial risks may be easier to measure and reduce, but the socio-cultural and political context is still critical.
It serves as a reminder to practitioners that good regulation must be both operationally oriented to address the specific actuarial risks and socio-cultural fears, as well as being politically sensitive.
First, actuarial risk, which is the traditional understanding of risk that is more or less quantifiable by technical experts.
6 billion, Prudential will take on all of the investment and actuarial risks, as well as administering the benefits, covered under this transaction, Tyson said.
They have developed state-of-the-art software tools to assist their clients with evaluating a range of financial and actuarial risks.
The author notes that when the PBGC was established, a private pension insurance market did not exist, partly because potential insurers lacked sufficient information on actuarial risks.
As insurers know, the latter includes actuarial risks, most notably property-liability and mortality risks.
Yet, the resources of the industry have traditionally been focused on actuarial risk management-and then only in an objective statistical sense.
Insurers must leverage their knowledge of the actuarial risks faced in retirement, and find cost-effective ways to mitigate those risks by using existing product designs in different combinations, or creating entirely new ones.