What actuarial techniques can be used in supervision and regulation of insurance comapnies?

actuarial techniches on solvency, liquidity, comparison of life and non-life premium rates, adequacy of reinsurance arrangements and so on.

State insurance laws differ somewhat, but there is some consistency thanks to the involvement of the NAIC. States employ financial examiners and actuaries who regularly visit all insurers domiciled within that state> All financial aspects of the insurer’s business are closely examined, including financial records, premiums received; business expenses paid; claim losses; reinsurance agreements; etc. The GAAP accounting method is typically used when performing these audits.

Also, whenever an insurer, whether domiciled within the state or not, wishes to raise its premiums, it must request the approval of the insurance commissioner within the state where it seeks the increase. Actuaries review these requests and make recommendations to the commissioner (or his/her designee) regarding their approval or disapproval.

life insurance rates compare