Actuary calculations in insurance based on summarized actuary basis with statistical modeling

Abstract

The concept of summarized actuary basis, unified for general insurance and life insurance, is proposed in the article. System of calculation patterns for insurance rates, reservation, determination of own capital sufficiency and risk division (franchise, reinsurance, incomplete property insurance), made upon summarized actuary basis and with the use of statistical modeling. Proposed system of calculation patterns differentiates from earlier counterparts by the possibility of calculation of insurance premiums, reservations, reinsurance premiums, required own capital for any kind of insurance contracts, including variable insurance sums, intensity of the occurrence of the insured and resolutory events, changes in the value of money in time and general insurance registration and etc. With the help of the proposed patterns was proved the necessary magnitude of insurance reserves and own capital. The author proposes to manage insurer’s financial stability through the use of set insurer’s safety guarantee (with the view of own capital). Proposed concept of actuary control is based on the check of actuary basis validity, informational uncertainty, and calculation methods. Appraisal of summarized actuary basis and the system of patterns that are based on it has shown its practical benefits.