Okuzeka
Insurance vocabulary · Premiums & Pricing

Actuary

Meaning in insurance, with examples

/ˈæktʃueri/nounCommon term

In insurance, actuary means: A specialist who uses statistics and mathematics to measure risk, calculate premiums and estimate how much money an insurer must keep for future claims.

In Turkish: aktüer

How it is used

A highly qualified profession with its own exams. Actuaries build pricing models, set reserves and sign actuarial reports for regulators. The adjective is 'actuarial': actuarial tables, actuarial valuation.

Example sentences

  1. The actuaries say we need to raise motor premiums by 25 percent to cover rising repair costs.

  2. Our appointed actuary reviewed the claims reserves before the year-end close.

Common collocations

  • appointed actuary
  • actuarial report
  • actuarial model
  • actuarial tables
  • premiumThe amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.
  • reserveMoney an insurer sets aside on its balance sheet to pay claims and other obligations it expects in the future.
  • loadingAn extra amount added to the standard premium because a risk is higher than normal, for example because of a health condition or a dangerous job.
  • underwritingThe process of studying a risk, deciding whether to insure it and setting the price and conditions of the policy.

More terms: Premiums & Pricing

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This page explains English vocabulary for learners. It is not financial advice.