Actuarial Science

The total premium charged before deductions, reflecting the base insurance cost plus loadings for expenses, contingencies, and profit.

An underwriting metric showing whether underwriting and claims operations break even at the policy level.

The gradual repayment of a debt or financing cost over scheduled periods.

The part of an insurance rate or premium added to cover the insurer's acquisition, underwriting, servicing, and administrative expenses.

Learn about the Graduated Life Table in life insurance, a mortality table enhanced with a formula for accuracy in predicting life expectancy.

A workers' compensation experience rating measure used to reflect loss cost efficiency.

Expected claims are the projected number or cost of claims for a policy, class, or book of business over a stated period.

An insurer's liability estimate for expenses already incurred or expected to arise from existing obligations but not yet paid.

A probability model used to estimate how many claim events occur when outcomes are limited to two results.

The net amount of coverage still exposed to loss at the time of a policyholder's death or event.

A policy premium value that includes a policy’s net premium plus assigned first-year acquisition expenses.

Annuity analysis compares annuity options based on payout profile, insurance carrier strength, fees, and rider effects.

A regulatory mortality table used in life insurance pricing, reserves, and nonforfeiture calculations.

An additional actuarial reserve held when assets are insufficient versus expected policy obligations.

The anticipated rate or probability of death for a defined insured population over a stated period.

The expense ratio measures how much of an insurer's premium is consumed by operating expenses rather than claim payments.

The actual death experience observed in an insured group and compared with the mortality that had been expected.

Exposure units are the measurable bases insurers use to rate coverage, such as payroll, car-years, occupied beds, or units of insured value.

Learn about Full Preliminary Term Reserve Valuation in Life Insurance, a policy stipulation where reserves are not mandatory in the first year and adjusted in following years.

IBNR refers to claim costs from losses that have already happened but have not yet been reported to the insurer.

An actuarial premium amount that funds expected benefits on a level basis, excluding expense and profit loadings.

Learn about T Tables (Pensions) and their significance in calculating retirement benefit funding by incorporating interest and mortality rates.

Learn about the mortality table in life insurance, which displays the frequency of death at particular ages, along with deaths by age group and based on a population of a million.

A reserve held to recognize possible shortfalls if assets or liabilities prove less favorable than recorded.

The actuarial present value of pension benefits that participants have earned and cannot forfeit under the plan’s vesting rules.

An appointed actuary certifies an insurer’s liability reserves so policyholders can rely on the company’s solvency and claims-paying ability.

The actuarial present value of pension benefits earned for service before a plan start date or before a retroactive plan change.

Learn about the Standard Annuity Table, a crucial mortality table used for annuities, formally known as The 1937 Standard Annuity Table, and its significance in pensions.

Learn about the Unfunded Supplemental Actuarial Value in pensions, which represents the difference between Supplemental Actuarial Value and Actuarial Asset Value.

Learn about the Z Table in life insurance, which presents mortality data from 1925 to 1934, and its significance in the insurance industry.

A basic mortality table shows observed ages of death in a population without smoothing or adjustment.

A historical regulatory mortality table used in industrial life insurance for reserve and nonforfeiture calculations.

Degree of risk expresses how likely an adverse insured event is, and how severe its impact could be.

The anticipated rate of sickness, disability, or medical utilization in a defined insured group.

In insurance, experience means the recorded claim or loss history of an insured, class of business, territory, producer, or book of business.

A pricing method that adjusts premium based on the insured's own prior loss results instead of relying only on class averages.

A provisional actuarial or underwriting table that is under development and not yet approved for direct premium rating use.

The average remaining lifetime for a person at a given age, as shown by a mortality table.

The recorded value of an asset in the insurer or policyholder books, before market revaluation.