Actuarial Science For Insurance

Actuarial science used by the insurer to calculate risk should they expect. Actuarial science uses mathematics, statistics, and probability in the future be used to protect risks with expected claims in the future with reliable accuracy.For example, most customers buy homeowner's insurance protection and then they pay a premium or installment of protection to insurance companies. Then if the customer loses insured, the insurer must pay the claim (filing compensation). For some insured, insurance benefits they can receive much greater than the money they pay to the insurer. While some other customers who may not make a claim. When averaged over all policies sold, the total claims paid out lower than the total premiums paid to the insured, the difference is the cost and benefit.
While the insurance company profits from the investment, the amount of premiums paid customers made stock so that the insurance company gets the difference more than the total premium. This money is called float. Insurers can benefit or loss from price changes and also float interest rate or dividend in the float. Float in insurance terms is obtained from investment fund premiums received until they have to pay the claim.