Insurance costs of the object are determined by a process such as actuarial calculations.Just using them and calculated the cost of services of the insurance company, as well as the contributions to be paid to the insured.And so you do not inadvertently counted nothing more, it would be nice to understand how made actuarial calculations in insurance.
For a start, we emphasize that the relationship between the insurer and the insured are based on a system of statistical and mathematical patterns that were formed historically.Calculation of insurance by using special mathematical formulas that reflect the mechanism of accumulation and expenditure of the reserve fund of the insurer in the long term.This applies mainly to life insurance.However, in the broadest sense actuarial calculations may be applied to any kind of security to determine the rates under certain conditions.With them also calculated the share of each insurer in the creation of a reserve fund, ieIt is differentiated tariff rates in the insurance business.
As for the term "actuarial calculations", he took on the title of the profession.Actuary (lat. "Actuarmus" - "accountant") - a specialist who develops mathematical and statistical methods for calculating the size of the required reserves, loans and credits.These people solve problems that are most often in the insurance we call "actuarial".
actuarial calculations and guidelines were first considered in the 17th century scientists: E. Halley, Jan de Witt, D. Graunt.In his book Graunt studied newsletters mortality and Witt pondered determination of the amount of insurance premiums, depending on the rate of growth of money and the age of the insured.Further development of the actuarial calculations obtained in Halley's mortality table which is used in our time.
To calculate contributions using the following parameters: frequency of occurrence of insured events, the factor accumulation risk loss ratio and its frequency.In practice also often use insurance statistics, as well as summarizing the indicators characterizing the rates in the insurance business as a whole.
Finally, it should be noted that the determination of tariffs in insurance is one of the most complex and controversial issues that require attention from the insurer.Therefore, experts in this field should aim to use the most modern achievements of computer technology, statistics and mathematics.The personal and property insurance used several different methods, because in the first case, the harm will, for example, to look at the demographics, while in the second it does not matter.Therefore, personal insurance for the calculation of net rates using special table of life expectancy and mortality, and in the property - table rate of return in the industry.
