What is an Actuarial Assumption?
Generic term for assumptions set for future accident rates, investment returns, expense ratios, and policy failure rates
Actuarial assumption
discuss
- Chinese name
- Actuarial assumption
- Applied discipline
- Assumptions
- Scope of application
- Future accident rate
- Scope of application
- return on investment
- Generic term for assumptions set for future accident rates, investment returns, expense ratios, and policy failure rates
- The actuarial assumptions should provide clear hypothetical values, and the actual experience rate data should be provided as the basis for the hypothesis setting, and the actuarial staff should explain the reasonable relationship between the actual experience rates and the assumed values.
- If the actuarial assumptions are provided by other units (for example, the interest rate or return on investment assumptions are provided by the investment department), the actuarial staff should still understand the methods of their assumptions and make comments on the reasonableness of the assumptions and the methods of the assumptions.
- If the actuarial assumptions are changed compared with the previous year, the actuarial staff should explain the reasons for the changes, and the values of the changed actuarial assumptions should be compared and explained in a comparison table. The actuarial staff should evaluate whether the changes in the assumptions have financial impact. Significant, if significant, a quantitative value should be provided to indicate the extent of its impact.