Actuarial assumption

Actuarial assumption,

Definition of Actuarial assumption:

  1. An actuarial assumption might include predicting a person's lifespan given their age, gender, and health conditions. Actuaries use large tables of statistical data that correlate the uncertain variable to a variety of key predictive variables. Given the values for the predictive variables, a sound actuarial assumption can be made for the uncertain variable or event.

  2. Forecasted conditions that may affect the payment of insurance or pension plan benefits.

  3. An actuarial assumption is an estimate of an uncertain variable input into a financial model, normally for the purposes of calculating premiums or benefits. Actuarial assumptions involve mathematical and statistical models designed to evaluate risk and probabilities for a particular event. Actuarial assumptions have broad applications, including in the finance industry, economics, computer programming, and in the insurance industry.

How to use Actuarial assumption in a sentence?

  1. Actuarial assumptions involve mathematical and statistical models designed to evaluate risk and probabilities for a particular event.
  2. Actuarial assumptions have broad applications, including in the finance industry, economics, computer programming, and the insurance industry.
  3. Insurance companies use actuarial assumptions when calculating the life expectancy projection of a person seeking life insurance.
  4. An actuarial assumption is an estimate or forecast of an uncertain variable or event normally for the purposes of calculating insurance premiums or benefits.

Meaning of Actuarial assumption & Actuarial assumption Definition