Actuarial

What Does Actuarial Mean?

“Actuarial” refers to anything related to actuaries or the use of data, statistics, and figures to assess risk and determine premium rates. It may be used to describe tables, reports, exams, charts, adjustments, and other related materials.

Insuranceopedia Explains Actuarial

Insurance companies often rely on actuaries—professionals who analyze data to evaluate risk—to calculate key statistics. Based on this actuarial information, they determine premium prices for their products. Calculating risk is essential to assess the likelihood of paying out claims. If risks are not accurately understood, the company may set premiums too low, potentially leading to financial losses. In short, actuarial information is critical to the success and stability of insurance companies.