Actuarial Risk

The possibility that an actuary's assessment of a potential policyholder's risk may turn out to be incorrect. For example, if an actuary is using statistical models and determines a policyholder is likely to live for another 30 years, there is an actuarial risk that the policyholder will die tomorrow. This would result in a large loss for the insurance company. Actuaries work to improve their statistical models to minimize actuarial risk. See also: Actuarial analysis.

单词	actuarial risk
释义	Actuarial Risk Actuarial Risk The possibility that an actuary's assessment of a potential policyholder's risk may turn out to be incorrect. For example, if an actuary is using statistical models and determines a policyholder is likely to live for another 30 years, there is an actuarial risk that the policyholder will die tomorrow. This would result in a large loss for the insurance company. Actuaries work to improve their statistical models to minimize actuarial risk. See also: Actuarial analysis.
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