How do "Actuaries" assist insurance companies in deciding the premium for a policy?By marketing the policy to potential clientsBy evaluating the possible risks and calculating the probability of the eventBy regulating the internal policies of the companyBy conducting customer surveys
Question
How do "Actuaries" assist insurance companies in deciding the premium for a policy?By marketing the policy to potential clientsBy evaluating the possible risks and calculating the probability of the eventBy regulating the internal policies of the companyBy conducting customer surveys
Solution
Actuaries assist insurance companies in deciding the premium for a policy by evaluating the possible risks and calculating the probability of the event. They use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. They evaluate the likelihood of those events, design creative ways to reduce the likelihood and decrease the impact of adverse events that actually do occur.
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