Actuarial Report
An Actuarial Report is a business analysis report that includes quantitative predictions.
- AKA: Actuarial Valuation.
- Context:
- It can (typically) make economic assumptions and demographic assumptions.
- See: Appraisal, Actuarial Task, Pension Fund.
References
2015
- https://www.irmi.com/online/insurance-glossary/terms/a/actuarial-report.aspx
- QUOTE: The product of an actuary's study of an organization's loss experience using probability theory and other methods of statistical analysis. Can be used to determine an insured's projected losses, a self-insured's liability accruals, the adequacy of a property-casualty (P&C) insurer's statutory loss reserves, or a life insurer's unearned premium (technical) reserves. May be the basis of rate development.
2014
- http://www.investopedia.com/terms/a/actuarial-valuation.asp
- QUOTE: An actuarial valuation is an type of appraisal which requires making economic and demographic assumptions in order to estimate future liabilities. The assumptions are typically based on a mix of statistical studies and experienced judgment. Since assumptions are often derived from long-term data, unusual short-term conditions or unanticipated trends can occasionally cause problems.
A common example where an actuarial valuation is in the valuation of a pension fund. It is usually easy to value a pension fund's assets because they primarily hold liquid securities such as stocks and bonds. However, it can be very difficult to value the liabilities of a pension fund. First, assumptions must be made to determine the total value of pension payouts that must be made in the future. Second, assumptions must also be made as to the expected growth of the fund's assets which will allow it to meet those obligations. If either set of assumptions proves to be significantly off, then there might be too little (or too much) funds in the future to pay pension benefits.
- QUOTE: An actuarial valuation is an type of appraisal which requires making economic and demographic assumptions in order to estimate future liabilities. The assumptions are typically based on a mix of statistical studies and experienced judgment. Since assumptions are often derived from long-term data, unusual short-term conditions or unanticipated trends can occasionally cause problems.