Actuary in General Insurance companies generally performs two very important tasks.
1. Reserving.
2. Premium Rating.
In reserving an actuary suggests company how much IBNR(incurred but not reported) claims could come in future along with how much reserves company should keep to take care of IBNER. moreover Actuary also gives his opinion on Solvency position of the company.
In Premium Rating , an actuary uses past data and trends to come up with rates which should be charged to policy holders in order to be competitive and profitable in the markets. These rates are dependent on rating factors and trends shown by the industry and companies past data.
Although the scope of actuary in General insurance company is much more than these two tasks, but currently in India , Actuaries perform these tasks only. Further the way in which IRDA is developing the market , it is not long when an actuary starts to perform other activities which are performed all around the globe.
2 comments:
what is IBNER??
Hi,. thanks for leaving comment.. IBNER is nothing but Incurred but not enough Reported
Sometimes company underestimates the claim outstanding , this reserve is basically used to cover this uncertainty.
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