4 December 2013

Guest Post: Risk, Insurance and the Actuary

Risk, Insurance, and the Actuary Risk is an inherent part of our daily life. As a result, most of us, take out insurance policies as a means of protection against scenarios which, were they to occur, may cause hardship whether for us or, as in the case of life insurance, for our families. Insurance companies write many types of policies. The mutual risks of the policy holders are shared so that claims made against the policies can be covered at a much reduced cost. If priced fairly, then the premium reflects the contribution of the insured’s risk to overall risk. […]