Economic capital refers to the amount of capital that a financial institution or organization needs to hold in order to cover its potential losses from various risks while maintaining solvency and financial stability. It is a concept widely used in risk management and is particularly important for banks, insurance companies, and other financial institutions.
Embedded value (EV) is a financial metric used primarily in the insurance industry, particularly for life insurance companies, to assess the economic value of the business. It represents the total value of an insurance company's existing business and provides insight into the long-term profitability of its operations.
An Enrolled Actuary (EA) is a professional who has been authorized by the Joint Board for the Enrollment of Actuaries to perform actuarial services for pension plans in the United States. The designation is specifically relevant in the context of federal pension law, primarily under the Employee Retirement Income Security Act of 1974 (ERISA) and subsequent legislation.
Financial modeling is the process of creating a quantitative representation of a financial situation or scenario. It typically involves building a spreadsheet model that incorporates historical data, assumptions, and projections to estimate future financial performance. Financial models are extensively used for various purposes, such as: 1. **Valuation**: Determining the worth of a business or an asset by projecting its future cash flows and discounting them back to present value.
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.
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.
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.
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.
Longevity risk refers to the potential financial risk that arises from individuals living longer than expected. This risk is particularly relevant in contexts such as pensions, insurance, and retirement planning. Here are some key points about longevity risk: 1. **Definition**: Longevity risk is the risk that people will outlive their financial resources due to an increase in life expectancy. This can impact both individuals and financial institutions.
The Loss Development Factor (LDF) is a key concept in actuarial science and insurance, particularly in the context of reserving and claims management. It helps insurers estimate the future loss amounts for claims that have already been reported but are not yet fully settled. The LDF is used to project the ultimate losses for a given accident year based on the loss experience observed up to different points in time.
The maximum lifespan refers to the longest period that an individual member of a species can live under optimal conditions, without the influence of environmental hazards, diseases, or other factors that could cause premature death. It is a theoretical limit to lifespan, as opposed to life expectancy, which is the average lifespan of a population based on current mortality rates.
Measuring Attractiveness by a Categorical-Based Evaluation Technique (MACBETH) is a method used for multi-criteria decision analysis (MCDA). This technique helps decision-makers evaluate and compare the attractiveness of various options based on qualitative and quantitative criteria. The primary aim of MACBETH is to transform qualitative assessments into a quantitative scale that allows for meaningful comparisons.
In the 18th century, Sweden was home to several notable physicists and scientists who made significant contributions to various fields, including physics, astronomy, and natural philosophy. One of the most prominent figures from this era is **Anders Celsius** (1701-1744), best known for creating the Celsius temperature scale. His work laid the foundation for modern temperature measurement, and his influence persists in the scientific community today.
The 18th century was a significant period for the development of physics in Switzerland, where several notable physicists made contributions to the field. Here are some key figures from that time: 1. **Albrecht von Haller (1708-1777)**: While primarily known as a physician and botanist, Haller's work also touched on aspects of physiology and mechanics, influencing both biology and physics.
In the context of mathematics, "1880s" typically refers to the period of the 1880s, when several significant developments and contributions were made in various fields of mathematics. This decade witnessed important advances in areas such as: 1. **Set Theory**: Georg Cantor further developed set theory, introducing concepts such as cardinality and different sizes of infinity, which laid the foundations for much of modern mathematics.
The 19th century was a significant period for physics in Germany, marked by numerous contributions and the development of various physical theories. Some notable German physicists from this era include: 1. **Gustav Kirchhoff (1824-1887)** - Known for his work on electrical circuits and spectroscopy. Kirchhoff's laws of current and voltage are fundamental to circuit analysis.