"Our findings suggest that correcting misperceptions about the relative frequency of firearm-related violent deaths may make persons more cognizant of the actuarial risks
to themselves and their family, thus creating new opportunities for prevention."
"Our analyses lead us to believe that insurers will eventually become adept at assessing the actuarial risks
of these new enrollees," the analysts say.
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.
In exchange for a premium paid by GM of about $2.6 billion, Prudential will take on all of the investment and actuarial risks
, as well as administering the benefits, covered under this transaction, Tyson said.
Stiglitz said giant banks should be "forced" to return to the "boring business of doing conventional banking," and that too-big-to-fail insurance companies should be "limited" to selling "conventional insurance products, with well defined 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
. Given the many financial innovations that have occurred in the past two decades, along with the considerable amount of actuarial data developed by the PBGC, the author believes that creating a competitive private market for pension insurance is now economically viable and indeed is necessary to protect taxpayers and retirement plan participants.
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.
"If the employer offers coverage to its employees at a certain level, but employees can switch to a higher tier of coverage when they get sick, which appears to be the case as the proposed rule is currently written, the employer faces increased uncertainty with respect to not only premium contributions but also plan costs and actuarial risks
associated with its pool of employees.
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.