Actuary

When to Use

• Price insurance or reinsurance products (indication, renewal, new business)
• Estimate reserves, IBNR, and loss development (paid/incurred triangles)
• Build or review mortality, morbidity, lapse, and expense assumptions
• Run experience studies and apply credibility weighting
• Explain loss ratio, combined ratio, and underwriting metrics
• Frame capital and risk metrics (RBC, SCR overview, economic capital concepts)
• Compare product design tradeoffs (benefits, riders, deductibles, guarantees)
• Document actuarial assumptions, methods, and model governance for sign-off
• Outline IFRS 17 / Solvency II / NAIC reporting concepts at technical overview level

When NOT to Use

• Corporate FP&A, budgets, variance commentary, or non-insurance KPI dashboards →

  financial-analyst

  (if installed)
• Investment banking comps, DCF equity valuation, or M&A pitch models →

  comps-analysis

  ,

  dcf-model

  (if installed)
• Contract legal interpretation, policy wording, or regulatory enforcement advice →

  commercial-counsel

• IFRS general ledger recognition without insurance contract measurement lens →

  ifrs

• Clinical trial design, biostatistics, or epidemiology outside insurance morbidity → health/clinical skills
• Building production software, ETL, or model code only without actuarial judgment →

  data-scientist

  ,

  senior-software-engineer

• SOC 2 / ISO audit evidence and control mapping without actuarial models →

  compliance-engineer

• Executive strategy without pricing/reserving/capital math →

  business-consultant

• Treasury, fundraising, and cash runway →

  cfo-advisor

  (if installed)

Related skills

ifrs

financial-statements

financial-analyst

business-consultant

compliance-engineer

security-risk-analyst

data-scientist

cfo-advisor

financial-intelligence-unit

quantitative-researcher

Core Workflows

1. Engagement scoping

1. Line of business — Life, health, P&C, annuity, reinsurance; direct vs assumed
2. Decision — Price change, reserve opinion, assumption update, product launch, regulatory filing
3. Data — Policy/claim bordereaux, triangles, census, experience periods, exclusions
4. Materiality — Volume, tail risk, new riders, or cohort changes driving review
5. Governance — Sign-off chain, model version, effective date, peer review requirements

references/actuary_scope_and_principles.md

2. Pricing and product design

1. Define coverage, limits, deductibles, and rating variables
2. Segment risks (territory, class, age band, hazard) with sufficient volume
3. Estimate frequency × severity or tabular costs; load for expenses, profit, and risk margin
4. Compare indicated vs current rates; document constraints (competitive, regulatory caps)
5. Stress key assumptions (loss trend, inflation, catastrophe load)
6. Summarize rate change and expected loss ratio / combined ratio impact

references/pricing_and_product_design.md

3. Reserving and loss development

1. Aggregate paid and incurred losses by accident year and development lag
2. Select development factors (chain ladder, BF, Cape Cod) with diagnostics
3. Estimate IBNR and total ultimate; separate case vs bulk reserves if needed
4. Reconcile to prior evaluation; explain changes (development, large losses, methodology)
5. Document tail selection and emergence patterns for long-tail lines

references/reserving_and_loss_development.md

4. Assumptions and experience studies

1. Define exposure base and study period; handle data quality and outliers
2. Compare actual vs expected (A/E) by key dimensions
3. Propose assumption updates with credibility (limited fluctuation, Bühlmann, or judgment)
4. Separate trend, level, and volatility where material
5. Version assumptions with effective dates and rationale for audit trail

references/assumptions_experience_studies.md

5. Capital and regulatory overview

1. Identify regime (NAIC RBC, Solvency II SCR, internal economic capital)
2. Map main risk drivers: underwriting, market, credit, operational (high level)
3. Relate reserves and pricing to solvency metrics—not a substitute for appointed actuary sign-off
4. Flag disclosure topics (IFRS 17 CSM, risk adjustment, LIC) for coordination with

   ifrs

5. Escalate legal or filing interpretation to counsel and appointed actuary

references/capital_risk_and_regulatory_overview.md

6. Model governance and deliverables

1. Inventory models (pricing, reserving, ALM); owner and validation status
2. Document inputs, methods, outputs, and limitations
3. Run sensitivity and reasonability checks; retain reproducible workpapers
4. Produce actuarial memo or exhibit: executive summary, exhibits, assumptions appendix
5. Archive versioned data cuts and sign-offs per model risk policy

references/model_governance_and_deliverables.md

Key metrics (insurance)

Line-of-business notes

P&C

• Ratemaking on exposure (payroll, sales, vehicles) with class plans and territory
• Long-tail lines need tail factors and paid/incurred reconciliation
• Catastrophe loads separate from attritional; event years flagged in triangles

Life

• Mortality, lapse, and expense drive profit testing and reserves
• Cash-value products need interest and crediting assumptions coordinated with ALM
• Select vs ultimate periods for recently underwritten cohorts

Health

• Morbidity trend split utilization vs unit cost when data allows
• Seasonality and benefit design changes (deductible, network) dominate A/E
• Risk adjustment and pooling (ACA, large group) affect segment homogeneity

Annuity

• Longevity and withdrawal drive guarantee costs; scenario sets for sensitivities
• Hedge effectiveness is investment-led; actuary supplies liability cash-flow shapes

Data requests (starter checklist)

1. Valuation date and reporting basis (statutory, GAAP, IFRS 17)
2. Triangle or bordereaux with field definitions (accident date, paid, case, count)
3. Exposure definition and earning pattern
4. Reinsurance structure (quota share, excess, aggregates) and netting rules
5. Large loss and catastrophe treatment in prior studies
6. Prior actuarial memo, approved assumptions, and model version

Reasonability and peer review

• Triangle diagnostics (stability, tail, calendar-year check)
• Implied ultimate LR vs pricing and plan
• Bridge of reserve change to prior quarter (volume, PYD, method)
• Assumption changes tied to experience study with credibility
• Sensitivities on top 3 drivers documented
• Independent reviewer for material models (per tiering policy)

Deliverable standards

Ethics and reliance

• Disclose conflicts when advising both pricing and reserving on the same block without review
• Cite data limitations and one-time events affecting experience
• Distinguish indication (technical) from implemented rate (commercial constraints)
• Refer legal interpretations of policy language or filing requirements to

  commercial-counsel

• Coordinate IFRS 17 measurement presentation with

  ifrs

  ; actuary owns cash-flow assumptions, not note legal wording

When to load references

• Scope, principles, ethics →

  references/actuary_scope_and_principles.md

• Pricing and product →

  references/pricing_and_product_design.md

• Reserving and triangles →

  references/reserving_and_loss_development.md

• Assumptions and experience →

  references/assumptions_experience_studies.md

• Capital and regulation (overview) →

  references/capital_risk_and_regulatory_overview.md

• Governance and memos →

  references/model_governance_and_deliverables.md