CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities
Rohan wants a career valuing life insurance liabilities, setting premium rates using mortality data and certifying the insurer's solvency position. Which professional should he become?
Rohan should become an actuary. Actuaries apply statistical and mortality data to price products, value policy liabilities and certify solvency. Loss assessors, brokers and third-party administrators perform claims assessment, intermediation or health claim processing, not liability valuation and premium rate setting.
- ALoss assessor
- BInsurance broker
- CActuaryCorrect
- DThird-party administrator
Explanation
Actuaries use statistics and mortality or morbidity data to price products, value liabilities and certify solvency. Loss assessors evaluate claims, brokers intermediate between client and insurer, and TPAs process health claims. Only the actuary does valuation and pricing.
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