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To what extend is the work of actuarial teams accurate enough to be basing…
To what extend is the work of actuarial teams accurate enough to be basing predictions off of
What are actuaries?
The definition of an actuary is a business professional who uses maths and statistics to measure and manage financial risk
Calculate risk
Set prices
Build models
Where do they work?
Insurance
Finance and Government
Pensions
Calculating insurance pricing
How do actuaries do their work?
Gather huge amounts of data on past claims and data
Use different financial models to simulate financial scenarios
Decides which risk variables to apply to the forecasts
Calculate insurance pricing based on these models
How important are actuaries to the world of insurance?
They are the foundation of insurance
They use maths to determine risks
They use past information to set a price for new insurance
Without them there would be no one setting prices for insurance
People could but nowhere near as accurate
How does the work of the team get used within insurance?
They use their stats and predictions to determine new insurance prices
They present their work to different people depending on the structure of the specific business
Underwriters
Clients
Managers
Pension holders
Government regulators