AADB stands for the Accountancy and Actuarial Discipline Board, which was an independent, investigative, and disciplinary entity in the UK.
Actuarial science is a branch of knowledge dealing with the mathematics of insurance, including probabilities. It is used in ensuring that risks are carefully evaluated, that adequate premiums are charged for risks underwritten, and that adequate provision is made for future payments of benefits.
Catastrophe Hazard refers to circumstances where there is a significant deviation of the actual aggregate losses from the expected aggregate losses, such as a major natural disaster where whole units or blocks of businesses are threatened. These hazards are often uninsurable by commercial insurance companies due to the extremity of the risk involved or the prohibitive actuarial premiums.
Life expectancy refers to the average age a person is expected to live based on actuarial calculations, which consider several factors including sex, heredity, and health habits. This metric is crucial for insurance companies in projecting benefit payouts and determining rates through actuarial analysis.
A mortality table, also known as a life table or actuarial table, is a statistical chart used to represent the probability of death of individuals in various age groups within a given population. It shows the rate of death at each age in terms of the number of deaths per thousand people.
A 'Number Cruncher' refers to both a person who spends much time calculating and analyzing numerical data as well as a computer specifically designed to perform extensive numerical calculations.
Past Service Liability refers to the obligations to fund an employee's benefits in a pension plan for their prior service before entering into the pension plan. It is a crucial element in pension planning and impacts the financing of future benefits.
An uninsurable risk is a risk that is considered too extreme or too difficult to quantify, thereby making it undesirable for insurance companies to provide coverage.
