Actuarial Equity

Actuarial Equity

An evaluation of the risk to an insurance company if it sells a policy to a particular person. Factors that may affect actuarial equity include family history, age body-mass index, occupation, and so forth. Actuaries use a variety of statistical models and other mathematical methods to calculate actuarial equity. See also: Actuarial Analysis.
References in periodicals archive ?
One side argued that social insurance should adhere to the principles of private insurance in that a definite relationship between a company's premium and its risks be established (i.e., actuarial equity).