Question

People who handle claims fall into a number of categories. Those who handle claims, keep claim records, and perform statistical analysis on behalf of self-insureds are called?

1) Underwriters
2) Actuaries
3) Claims adjusters
4) Risk managers

Answer 1

Actuaries are professionals who manage claims, maintain records, and analyze statistics for self-insured entities. They ensure that insurance premiums cover the costs of claims, administration, and provide profit for the company.

Step-by-step explanation:

Individuals who handle claims, maintain claim records, and carry out statistical analyses for self-insured entities are known as actuaries. Actuaries are professionals who apply mathematical and statistical methods to assess risk in the insurance, finance, and other industries. They are deeply involved in the design and pricing of insurance policies, considering various factors such as investment income on reserves, administrative costs, and risk groups to ensure that, over time, the collected premiums cover the claims, operational costs, and provide profits for the company. Actuarial fairness is essential for the sustainability of an insurance company as it requires a balance between the premiums collected and the claims paid out, adjusted for the specific risks of different groups or individuals.