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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Rates under the National Flood Insurance Program in this new flood zone would be based on actuarial risk, meaning if levees provide a 50-year level of flood protection FEMA would charge rates based on that discounted risk level.
Its metrics include credit risk, market risk, liquidity risk, interest risk, asset-liability management, valuations, performance measurement, integrated investment portfolio risk, and actuarial risk, as well as management, transfer pricing and risk-adjusted return.
The use of estrogen therapy compared with estrogen plus progestogen therapy reduced the subsequent risk of breast cancer (10-year actuarial risk of breast cancer of 12% vs 22%, respectively; P = .04).
Denuit, 2008, Modern Actuarial Risk Theory Using R, Vol.
The firm said that instead of considering a consumer's relative health status or actuarial risk, the programme calculates payments based on unrelated factors such as how an insurer's premiums compare to state wide averages.
But this focus had now shifted to a "purely fiscal approach of investment in health based on actuarial risk of individuals' ill health".
Their topics include human dangerousness and the legacy of fear management, an introduction to violence risk assessment with sex offenders, developing and evaluating actuarial risk assessment instruments, the importance of theory in assessing risk, and recommendation on science and forensic practice.
Davis states that "stand-alone hospitals have neither the number of patients to manage the actuarial risk of population management, nor the geographic coverage to serve a large population." This is a difficult statement to stomach, seeing as PPACA has led to 10-12 million more insured people using the health care system in America.
The ACA directs the Secretary, in consultation with the states, to establish criteria and methods to be used in determining the actuarial risk of plans within a state.
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.