Actuaries bring value to General Insurance
General insurance actuaries help provide expertise in three main areas:
- Reserving - actuaries apply statistical techniques to assess the likely outcome of general insurance liabilities, typically, and the provisions that are needed for reporting purposes
- Pricing - actuaries assess the frequency and average amount of claims to estimate premiums
- Capital modelling - actuaries project both the liability and assets of insurers to assess solvency and future capital needs.
General insurance, such as motor and household insurance policies, provide payments to cover loses arising from a particular financial event. General insurance typically includes any insurance that is not determined to be life insurance. General insurance is is called ‘property and casualty insurance’ in the United States of America and ‘non-life insurance’ in most of Europe.
General insurance is broadly divided into two areas, personal lines and commercial lines.
Commercial lines - products are usually designed for relatively large legal entities. These would include workers' comp (employers liability), public liability, product liability, commercial fleet and other general insurance products sold in a relatively standard fashion to many organisations. There are many companies that supply comprehensive commercial insurance packages for a wide range of different industries, including shops, restaurants and hotels.
Personal lines - products are designed to be sold in large quantities. This would include motor insurance, household insurance, pet insurance, creditor insurance and others.
The London Market provides a focus for many insurance companies and syndicates operating under a Lloyd’s of London banner to write large commercial risks such as supermarkets, football players and other very specific risks.
The London Market consists of a number of insurers, reinsurers, brokers and other companies that are typically physically located in the City of London. Their business is usually written through specialist brokers. The London Market also participates in personal and commercial lines, domestic and foreign, and provides reinsurance.
The General Insurance Board actively influences the environment in which General Insurance actuaries practice
The statistics on the changing profile of our membership tell us that around 30% of our general insurance members live and work outside the UK. As a result, the General Insurance Board is continually looking at what it can do to support our non UK members.