Risk assessment involves evaluating the likelihood and potential impact of uncertain events.

The Poisson distribution is often used to model the number of claims occurring in a fixed interval, assuming a constant rate of occurrence.

The present value of a future cash flow is the value of that cash flow today, taking into account the time value of money.

The expected value of a random variable X is calculated by integrating the product of X and its probability density function (f(x)) over the entire range of possible values of X.

Mortality tables provide information about the probability of death at different ages, which is essential for calculating insurance premiums and other actuarial calculations.

Survival analysis is a statistical method used to estimate the probability of an event occurring within a specified time period, taking into account the possibility of censoring.

Actuaries are responsible for assessing and managing financial risks associated with insurance policies, including the risk of claims and the risk of investment losses.

A deductible is a fixed amount that the insured must pay out-of-pocket before the insurance coverage begins to pay for covered expenses. A copayment is a fixed amount that the insured must pay for each covered service, regardless of the total cost of the service.

The standard deviation of a random variable X is calculated by taking the square root of the variance, which is the expected value of the squared deviation of X from its mean.

Reserves are set aside by insurance companies to cover future claims and expenses, ensuring that the company has sufficient funds to meet its obligations to policyholders.

Monte Carlo simulation is a stochastic method used to project future cash flows for a pension plan, taking into account various economic and demographic factors.

Risk assessment is the process of identifying and evaluating potential risks that may affect an insurance company or other financial institution.

The probability of an event A occurring is calculated as 1 minus the probability of the event not occurring (¬A).

The primary purpose of an insurance policy is to provide financial protection against risks, such as the risk of death, disability, or property damage.