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15 results for “actuarial”

Formulae (15)

PP = f \times S

Expected claim cost per policy: frequency times severity.

GP = \frac{PP}{1 - e}

Premium that covers claims plus an expense/profit load.

LR = \frac{C}{P}

Claims paid divided by premiums earned.

CR = LR + ER

Total cost ratio: losses plus expenses vs premium.

E[X] = \sum p_i x_i

Probability-weighted average of possible claim amounts.

PV = P \frac{1 - (1+r)^{-n}}{r}

Value today of a stream of future payments.

FV = P \frac{(1+r)^n - 1}{r}

Accumulated value of regular contributions.

e_x = \sum_{k=1}^{\infty} {}_k p_x

Expected remaining whole years of life from survival probabilities.

q_x = \frac{d_x}{l_x}

Probability that a life aged x dies within the year.

R = \hat{C} - C_{paid}

Money set aside for claims incurred but not yet fully paid.

P = Z\bar{x} + (1-Z)\mu

Blend own experience with the wider average by a credibility factor.

P = E[X] + \theta\,\text{Var}(X)

Premium that adds a load proportional to risk variance.

f = \frac{N}{E}

Number of claims per unit of exposure.

C = q_x \times B

Expected one-year cost of a term policy.

SR = \frac{A - L}{L}

Insurer's capital buffer relative to its liabilities.