𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐨 𝐦𝐞 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐚𝐧𝐝 𝐑𝐞𝐬𝐞𝐫𝐯𝐢𝐧𝐠 𝐨𝐟 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐢𝐧 𝐀𝐜𝐭𝐮𝐚𝐫𝐢𝐚𝐥 𝐭𝐞𝐫𝐦𝐬 - Part 1?
𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐚𝐧𝐝 𝐑𝐞𝐬𝐞𝐫𝐯𝐢𝐧𝐠 𝐨𝐟 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐢𝐧 𝐀𝐜𝐭𝐮𝐚𝐫𝐢𝐚𝐥 𝐭𝐞𝐫𝐦𝐬 - Part 1 💪🏻 Pricing and reserving of general insurance in actuarial terms involves using mathematical models and statistical analysis to estimate the expected future costs of insuring against specific risks. 💪🏻 Pricing involves determining the premium that should be charged to the policyholder in order to cover the expected cost of claims and expenses, while still allowing for a profit margin. This process involves analyzing data on past claims and expenses, as well as projecting future trends and changes in risk. 💪🏻 Reserving involves setting aside funds to pay for expected claims in the future. Actuaries use mathematical models to estimate the ultimate cost of claims that have been reported, but not yet paid. This involves considering factors such as the length of time it takes for claims to be paid, the expected value of claims, and the probability of payment. 💪