Actuarial science

alt=The Demography of the World Population from 1950 to 2100. Data source: United Nations — World Population Prospects 2017|thumb|350x350px|The Demography of the World Population from 1950 to 2100. Data source: United Nations — World Population Prospects 2017

thumb|upright=1.35|Firefighters are exposed to risks of [[fire and building collapse during their work.]]

statistical measure of how long a person or organism may live, based on factors of their life

measure of the number of deaths in a population from a given cause, scaled by population, in a set period of time

management to identification, evaluation, and prioritization of risks

when interest is added to the principal of a deposit or loan, so that, from that moment on, the interest that has been added also earns interest

branch of statistics, mathematical methods are used here

thumb|Headquarters of the Munich Reinsurance Company

risk of default on a debt that may arise from a borrower failing to make required payments

discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries

In finance, discounting is a mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee. Essentially, the party that owes money in the present purchases the right to delay the payment until some future date. This transaction is based on the fact that most people prefer current interest to delayed interest because of mortality effects, impatience effects, and salience effects. The discount, or charge, is the difference between the original amount owed in the present and the amount that has to be paid in the future

probability distribution

branch of economics concerned with financial or monetary transactions

estimated, as yet unrealised loss for an investment for a given set of conditions

conjecture that there is greater benefit to receiving a sum of money now rather than later

preference against risk, a common human behavior of attempting to lower uncertainty and avoid risk

Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee. An underwriting arrangement may be created in a number of situations including insurance, issues of security in a public offering, and bank lending, among others. The person or institution that agrees to sell a minimum number of securities of the company for commission is called the underwriter.

table which shows probability of death

class of statistical models

frequency with which an engineered system or component fails

variety of statistical techniques to make predictions about future or otherwise unknown events

statistical distribution for dependence between random variables

typically defined as any insurance that is not determined to be life insurance

CAGR is a term for the geometric progression ratio that provides a constant rate of return

implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame

non-parametric statistic used to estimate the survival function

mathematical equation related to human death rate

methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives

insurance for injuries during employment, in exchange for relinquishing the right to sue the employer

measure of the maximum amount of time individuals in a population have been observed to survive between birth and death

branch of statistics focusing on large deviations

flood event that has a 1% probability of being equaled or exceeded in any given year

amount of money needed to secure survival in a worst-case scenario

probability distributions whose tails are not exponentially bounded

financial contract which provides an income stream in return for an initial payment with specific parameters

type of annuity

task of building an abstract representation of a real world financial situation

diagram used in demographics

level of risk that an organization or individual is prepared to accept in pursuit of objectives, before action is deemed necessary to reduce the risk

economic value used to quantify the benefit of avoiding a fatality. It is also referred to as the cost of life, value of preventing a fatality (VPF), implied cost of averting a fatality (ICAF), and value of a statistical life (VSL)

estimate of the average years a person would have lived if they had not died prematurely

economics term

profitability measurement framework

Function in actuarial science

branch of applied computer science that deals with problems of practical interest in finance

the potential loss an institution may incur, as a consequence of decisions that could be principally based on the output of internal models, due to errors in the development, implementation or use of such models

measure of value of a life insurance company

theorem

continuous probability distribution, named after Benjamin Gompertz

approach to investment management

financial standard on insurance contracts

concept in financial mathematics that is used to determine the amount of an asset or set of assets to be kept in reserve