Actuarial Science Applied To Other Forms of Insurance
Actuarial science is also applied to Property, Casualty, Liability, and General insurance. In these forms of insurance, coverage is generally provided on a renewable period, (such as a yearly). Coverage can be cancelled at the end of the period by either party.
Property and casualty insurance companies tend to specialize because of the complexity and diversity of risks. One division is to organize around personal and commercial lines of insurance. Personal lines of insurance are for individuals and include fire, auto, homeowners, theft and umbrella coverages. Commercial lines address the insurance needs of businesses and include property, business continuation, product liability, fleet/commercial vehicle, workers compensation, fidelity & surety, and D&O insurance. The insurance industry also provides coverage for exposures such as catastrophe, weather-related risks, earthquakes, patent infringement and other forms of corporate espionage, terrorism, and "one-of-a-kind" (e..g, satellite launch). Actuarial science provides data collection, measurement, estimating, forecasting, and valuation tools to provide financial and underwriting data for management to assess marketing opportunities and the nature of the risks. Actuarial science often helps to assess the overall risk from catastrophic events in relation to its underwriting capacity or surplus.
In the reinsurance fields, actuarial science can be used to design and price reinsurance and retro-reinsurance schemes, and to establish reserve funds for known claims and future claims and catastrophes.
Read more about this topic: Actuarial Science
Famous quotes containing the words science, applied, forms and/or insurance:
“Whilst Marx turned the Hegelian dialectic outwards, making it an instrument with which he could interpret the facts of history and so arrive at an objective science which insists on the translation of theory into action, Kierkegaard, on the other hand, turned the same instruments inwards, for the examination of his own soul or psychology, arriving at a subjective philosophy which involved him in the deepest pessimism and despair of action.”
—Sir Herbert Read (1893–1968)
“Until a friend or relative has applied a particular proverb to your own life, or until you’ve watched him apply the proverb to his own life, it has no power to sway you.”
—Nicholson Baker (b. 1957)
“[In government] the problem to be solved is, not what form of government is perfect, but which of the forms is least imperfect.”
—James Madison (1751–1836)
“Women hock their jewels and their husbands’ insurance policies to acquire an unaccustomed shade in hair or crêpe de chine. Why then is it that when anyone commits anything novel in the arts he should be always greeted by this same peevish howl of pain and surprise? One is led to suspect that the interest people show in these much talked of commodities, painting, music, and writing, cannot be very deep or very genuine when they so wince under an unexpected impact.”
—John Dos Passos (1896–1970)