BANKING AFFAIRS

Detailed explanation-1: -As mentioned, an insurance actuary decides on the policy’s premium, considering various risk factors. “They also play a key role in designing and managing insurance products. While working on these, the actuary ensures that PRE (policyholder reasonable expectations) are met.

Detailed explanation-2: -Actuaries predict insurance company costs, then help them set premiums and design policies based on those numbers. Actuaries can specialize in a particular kind of insurance, such as life insurance, health insurance, car insurance or liability insurance.

Detailed explanation-3: -Insurance companies generally employ actuaries to determine risk levels and premium prices for a given insurance policy.

Detailed explanation-4: -Actuaries play a crucial role in the operation and profitability of any insurance business. They help the firm with their expertise in calculation of premiums of various insurance policies, rating methods and reserves, etc.

Detailed explanation-5: -The primary area of actuarial involvement is in determining the expected claims cost. The pricing actuary uses statistical analysis of past claims experience, together with measures of exposures and related risk factors. The pricing process is most structured for personal lines business.