The force of mortality, often denoted by the symbol \( \mu(x) \), is a concept in actuarial science and demography that describes the instantaneous rate of mortality or the hazard function at a given age \( x \). It measures the likelihood that an individual at age \( x \) will die in an infinitesimally small interval of time, given that they have survived up to that age.
In actuarial science, "future interests" typically refers to the expected future values or cash flows that will be received or paid at a specific time in the future. This concept is essential for assessing the financial implications of insurance policies, pensions, investments, and other financial commitments.
General insurance refers to a category of insurance that provides coverage for various types of risks and losses, excluding life insurance. It primarily encompasses policies that protect individuals and businesses against financial losses resulting from unexpected events. General insurance types typically include: 1. **Property Insurance**: Covers damage to or loss of physical property, such as home insurance, renters insurance, and commercial property insurance. 2. **Liability Insurance**: Protects against claims of negligence, injury, or damage to third parties.
A Generalized Linear Model (GLM) is a flexible framework for modeling a wide variety of response variables and is an extension of traditional linear regression. It generalizes linear regression to allow for response variables that have error distribution models other than a normal distribution. Here are the key components of a GLM: 1. **Random Component**: This refers to the probability distribution of the response variable \(Y\).
German Statutory Accident Insurance (gesetzliche Unfallversicherung) is a component of the country's social security system that provides coverage for employees in the event of work-related accidents and occupational diseases. This insurance system is designed to protect workers by offering benefits such as medical treatment, rehabilitation, and financial compensation in the case of work-related injuries.
The Gompertz distribution is a continuous probability distribution often used to model the time until an event occurs, particularly in survival analysis and reliability engineering. It is characterized by a cumulative distribution function (CDF) that describes the likelihood of the time until an event, such as failure or death, occurs.
The Gompertz–Makeham law of mortality is a mathematical model used to describe the age-specific mortality rates, particularly in humans and other organisms. It combines two components: the Gompertz function, which accounts for the increasing mortality risk due to aging, and a constant term that represents the background or external risk of death that does not depend on age.
Hattendorff's theorem is a result in queuing theory that pertains to the analysis of single-server queues, particularly those that follow a Markovian arrival process and service time distribution. The theorem deals with the expected waiting time in the queue and helps to determine both the average number of customers in the queue and the average time a customer spends in the system.
A heavy-tailed distribution is a type of probability distribution that has a tail, which is the part of the distribution that represents extreme values, that is significantly heavier or more significant than that of the exponential distribution. This means that it has a higher probability of producing values far from the mean compared to lighter-tailed distributions, such as the normal distribution. In practical terms, this implies that heavy-tailed distributions can model phenomena where extreme events have a considerable chance of occurring.
IFRS 17, or International Financial Reporting Standards 17, is a standard issued by the International Accounting Standards Board (IASB) that establishes principles for the recognition, measurement, presentation, and disclosure of insurance contracts. It came into effect on January 1, 2023, replacing the previous standard, IFRS 4, which allowed a wide variety of approaches to insurance contract accounting.
IFRS 4, titled "Insurance Contracts," is an International Financial Reporting Standard established by the International Accounting Standards Board (IASB). It was introduced in 2004 and is primarily focused on the accounting for insurance contracts by insurance companies. Here are some key points about IFRS 4: 1. **Scope**: IFRS 4 applies to all insurance contracts as defined within the standard, including reinsurance contracts.
The term "Increased Limit Factor" (ILF) may refer to different concepts depending on the context in which it is used. In general, it is most commonly associated with insurance and risk management industries, particularly in relation to policy limits and coverage. 1. **Insurance Context**: In the context of insurance, the Increased Limit Factor is used to calculate additional premiums for policyholders who wish to raise their coverage limits beyond the standard amount offered by an insurance policy.
Incurred but not reported (IBNR) refers to insurance claims that have occurred but have not yet been reported to the insurer. This concept is particularly important in the context of insurance reserves and actuarial science, as it represents a liability for the insurance company. IBNR is significant for several reasons: 1. **Claims Development**: Insurance claims can take time to be reported, especially in certain lines of insurance like health, workers' compensation, or auto insurance.
An influential observation in statistics refers to a data point that significantly affects the results of a statistical analysis, particularly in regression models. These observations can have a disproportionate impact on the estimates of parameters (such as regression coefficients), the overall fit of the model, and predictions made by the model.
The Insider investment strategy refers to a trading approach that involves purchasing stocks based on the buying patterns of company insiders—executives, directors, and other individuals with access to non-public, material information about the company. Insiders often have a better understanding of the company's business prospects and financial health than the average investor, so their trading activity can signal confidence (or lack thereof) in the company's future performance. ### Key Elements of the Insider Investment Strategy: 1. **Insider Buying vs.
The insurance cycle refers to the recurring pattern of fluctuations in the insurance market, particularly the pricing and availability of insurance coverage. It typically consists of two main phases: the hard market and the soft market. 1. **Hard Market:** - In a hard market, insurance premiums increase, and underwriting standards become stricter. Insurers may reduce their coverage options, exclude certain risks, or require higher deductibles.
An insurance score is a numerical representation used by insurance companies to help assess the risk associated with providing coverage to an individual or entity. This score is typically derived from various factors, including credit history, payment patterns, and other financial behaviors. Although it may vary by insurer, the insurance score is often a key component in determining premiums for auto, home, and other types of insurance.
The International Congress of Actuaries (ICA) is a significant global event for professionals in the actuarial field, organized to address advancements, challenges, and innovations in actuarial science, insurance, pensions, and risk management. It typically brings together actuaries and experts from around the world to exchange knowledge, share research, and discuss the latest trends and developments in the industry.
The Joint Board for the Enrollment of Actuaries (JBEA) is a U.S. federal agency that oversees the enrollment of actuaries to practice before the federal government, primarily in the context of pension plans and other employee benefit programs. Established under the Employee Retirement Income Security Act of 1974 (ERISA), the JBEA is responsible for certifying actuaries who meet specific qualifications and adhere to regulatory requirements.
The Kaplan–Meier estimator is a statistical tool used to estimate the survival function from lifetime data. It is particularly useful in medical research for analyzing time-to-event data, such as the time until an event of interest occurs (like death, relapse, or failure) when some subjects are censored, meaning they leave the study or do not experience the event during the observation period.