Vocabulary Words Every Insurance Actuary Should Know

Risk

Definition: The possibility of something bad happening.

• There is a risk of falling if you climb too high.
• We need to assess the risk before starting the project.
• Taking risks can lead to great rewards if managed well.

Risk in a sentence

Plan

Definition: A detailed proposal for doing or achieving something; a strategy or outline.

• They made a plan for their vacation next summer.
• Having a plan helps organize thoughts and actions.
• She wrote a plan for her science project.

Plan in a sentence

Cost

Definition: The amount of money needed to buy something.

• The cost of the book is ten dollars.
• She checked the cost of the concert tickets.
• It may cost more to travel during the holidays.

Cost in a sentence

Pay

Definition: To give money for goods or services.

• I will pay for my lunch today.
• She forgot to pay the bill on time.
• They need to pay for their movie tickets.

Pay in a sentence

Safe

Definition: Free from harm or danger.

• It is important to keep our home safe.
• Always wear a helmet to stay safe while biking.
• This is a safe place for kids to play.

Safe in a sentence

Loss

Definition: the state of losing something; not having something anymore

• His loss of a pet made him very sad.
• The team felt the loss of their star player.
• She experienced a loss when her grandmother passed away.

Loss in a sentence

Claim

Definition: To state something as a fact or to assert a right to something.

• He will claim his prize at the ceremony.
• She made a claim about her invention.
• You need to claim your lost items at the office.

Claim in a sentence

Help

Definition: To assist someone with something.

• Can you help me with my homework?
• She helped her mother in the kitchen.
• He always helps his friends.

Help in a sentence

Group

Definition: A number of people or things that are located, gathered, or classed together.

• We worked in a group for the science project.
• A group of students went on a field trip.
• The group will meet every Wednesday to discuss their plans.

Group in a sentence

Data

Definition: Information collected for analysis.

• The data shows an increase in sales.
• We need to analyze the data carefully.
• His research includes a lot of data.

Data in a sentence

Work

Definition: activity involving mental or physical effort

• He has a lot of work to do this week.
• She enjoys her work as a teacher.
• They finished their work ahead of schedule.

Work in a sentence

Time

Definition: A measured period during which events occur; a point in the day.

• What time is it now?
• We need to manage our time wisely.
• Time flies when you're having fun.

Time in a sentence

Fact

Definition: a statement that can be proven true

• It is a fact that the Earth revolves around the sun.
• She shared a fact about animals during the presentation.
• Understanding facts is important for learning.

Fact in a sentence

Rate

Definition: To evaluate or assess something.

• We need to rate the movie we watched.
• She will rate the performance of the team.
• Please rate your experience at the restaurant.

Rate in a sentence

Rule

Definition: A statement that tells what is allowed or what will happen.

• The teacher made a rule about talking in class.
• We follow the rules to keep everyone safe.
• It's important to know the rules of the game.

Rule in a sentence

Case

Definition: A particular situation or example.

• In this case, we need to find a solution.
• The teacher explained the case of the missing book.
• He carried his glasses in a protective case.

Case in a sentence

Value

Definition: The importance or worth of something.

• Honesty has great value in life.
• The value of gold is very high.
• She understands the value of hard work.

Value in a sentence

Money

Definition: Paper or coins used to buy things.

• I need money to buy a new book.
• He saved his money for a new bike.
• We use money to pay for food.

Money in a sentence

Job

Definition: a paid position of regular employment

• He found a job at the local library.
• She enjoys her job as a teacher.
• Many students are looking for summer jobs.

Job in a sentence

Policy

Definition: A plan or course of action adopted by an organization.

• The school has a policy on bullying.
• Their policy helps protect the environment.
• She explained the new policy to the staff.

Policy in a sentence

Premium

Definition: Of higher quality; an additional cost for extra benefits.

• They offer a premium membership with special perks.
• He paid a premium price for the concert tickets.
• The product comes in a premium package.

Premium in a sentence

Coverage

Definition: The extent to which something is reported or included.

• The news coverage of the event was extensive.
• He checked the insurance coverage before the trip.
• The magazine provided great coverage of the festival.

Coverage in a sentence

Estimate

Definition: An approximate calculation or judgment.

• Can you give me an estimate of the cost?
• The estimate showed we would finish on time.
• She made an estimate of how many people would attend.

Estimate in a sentence

Adjuster

Definition: a person who changes or modifies something

• The adjuster reviewed the insurance claim.
• He is an adjuster for the insurance company.
• An adjuster can help make necessary changes.

Adjuster in a sentence

Benefit

Definition: An advantage or profit gained from something.

• Exercise has many health benefits.
• The scholarship will benefit students in need.
• We all benefit from working together.

Benefit in a sentence

Liability

Definition: the state of being responsible for something, especially in law

• He accepted liability for the accident.
• The company has a liability to its employees.
• Understanding liability is important in business.

Liability in a sentence

Insurance

Definition: A contract that provides protection against financial loss.

• Car insurance helps pay for damages in an accident.
• I have health insurance to cover doctor visits.
• You should get insurance for valuable items.

Insurance in a sentence

Customer

Definition: A person who buys goods or services.

• The customer was happy with her purchase.
• They treat every customer with respect.
• She is a loyal customer at that store.

Customer in a sentence

Contract

Definition: A formal agreement between two or more parties.

• They signed a contract for the new job.
• The contract outlines the terms of the agreement.
• It's important to read a contract carefully before signing.

Contract in a sentence

Payment

Definition: Money given for goods or services.

• I made my payment for the concert tickets.
• The payment is due at the end of the month.
• We can process your payment online.

Payment in a sentence

Assess

Definition: To evaluate or estimate the nature or quality of something.

• The teacher will assess the students' progress.
• She assessed the damage after the storm.
• They need to assess the situation carefully.

Assess in a sentence

Reserve

Definition: To keep something for future use; a supply kept for a specific purpose.

• You can reserve a table at the restaurant for dinner.
• They decided to reserve some snacks for the party.
• Make sure to reserve your spot in the class early.

Reserve in a sentence

Insurer

Definition: A company or entity that provides insurance coverage.

• The insurer reviewed the claim before approval.
• She chose a reliable insurer for her house.
• The insurer is responsible for paying claims as agreed.

Insurer in a sentence

Underwriting

Definition: the process of evaluating risk for insurance

• Underwriting is essential for approving insurance policies.
• He works in underwriting for a large company.
• Understanding underwriting helps in managing risks.

Underwriting in a sentence

Adjustment

Definition: A change made to improve or adapt to a situation.

• She made an adjustment to her schedule to fit in more study time.
• He needed an adjustment to his glasses for better vision.
• Understanding adjustment helps in adapting to new environments.

Adjustment in a sentence

Procedure

Definition: a series of steps to accomplish a task

• Follow the procedure to complete the assignment.
• The procedure for the experiment was explained.
• He learned the procedure for making cookies.

Procedure in a sentence

Regulation

Definition: A rule or directive made and maintained by an authority.

• The regulation ensures safety.
• They followed the regulation carefully.
• New regulation was introduced for better practices.

Regulation in a sentence

Analysis

Definition: The detailed examination of something to understand it better.

• He did an analysis of the data for his project.
• Her analysis showed interesting results.
• They worked together on the analysis of the report.

Analysis in a sentence

Financial

Definition: Related to money or the management of money.

• She took a course in financial planning.
• The company is in a strong financial position.
• He needs financial advice for his budget.

Financial in a sentence

Forecast

Definition: a prediction about future events

• The weather forecast says it will rain tomorrow.
• We reviewed the economic forecast for next year.
• The forecast showed sunny skies ahead.

Forecast in a sentence

Actuary

Definition: A professional who analyzes financial risk using mathematics.

• An actuary helps companies set insurance rates.
• She wants to become an actuary after college.
• The actuary provided valuable insights into the financial report.

Actuary in a sentence

Claims

Definition: Statements or assertions that something is true.

• She made several claims about the benefits.
• The company has to support its claims.
• His claims were backed by evidence.

Assessment

Definition: An evaluation or test to measure knowledge or skills.

• The teacher gave an assessment to check our progress.
• We will have a math assessment next week.
• Assessments help identify areas to improve.

Assessment in a sentence

Portfolio

Definition: a collection of work or documents

• She showed her portfolio during the job interview.
• His art portfolio impressed the gallery.
• The student created a portfolio of her best essays.

Portfolio in a sentence

Statistic

Definition: A numerical fact or piece of data.

• The statistic shows the number of students in school.
• She looked at the statistic to understand trends.
• Statistics can help us make informed decisions.

Statistic in a sentence

Indemnity

Definition: Security or protection against a financial loss or damage.

• The policy offered indemnity against theft.
• They sought indemnity for damages caused by the storm.
• Indemnity clauses are common in contracts.

Indemnity in a sentence

Solvency

Definition: The ability of an individual or organization to meet its long-term financial obligations.

• The company’s solvency was assessed during the audit.
• Maintaining solvency is crucial for business success.
• He learned about solvency in his finance class.

Solvency in a sentence

Diversification

Definition: The process of varying investments or activities to reduce risk.

• Diversification in business can lead to greater stability.
• They discussed the importance of diversification in farming.
• Understanding diversification helps in planning.

Diversification in a sentence

Exposure

Definition: The state of being exposed to something; the experience of something new.

• He had exposure to different cultures during his travels.
• The artist gained exposure through her exhibitions.
• She was worried about the exposure to cold weather.

Exposure in a sentence

Mortality

Definition: The state of being subject to death; the number of deaths in a specific population.

• The mortality rate was high during the outbreak.
• Understanding mortality is important in public health.
• They studied mortality rates to analyze health trends.

Mortality in a sentence

Actuarial

Definition: Related to the statistical analysis of risk and uncertainty.

• The actuarial profession involves calculating insurance risks.
• He studied actuarial science to understand risk management.
• Actuarial methods are used to set insurance premiums.

Actuarial in a sentence

Risk Assessment

Definition: The process of identifying and analyzing potential problems or dangers.

• They conducted a risk assessment before the project began.
• His job involves risk assessment for workplace safety.
• Risk assessment helps in making informed decisions.

Risk Assessment in a sentence

Reinsurance

Definition: Insurance purchased by an insurance company to manage risk.

• Reinsurance helps companies reduce financial risk.
• The insurance firm relies on reinsurance for stability.
• Understanding reinsurance is important in finance.

Reinsurance in a sentence

Catastrophe

Definition: A sudden and widespread disaster or event causing great damage or suffering.

• The earthquake was a catastrophe for the entire region.
• She studied the effects of catastrophe on communities.
• Understanding catastrophe preparedness is essential for safety.

Catastrophe in a sentence

Underwriting Guidelines

Definition: rules for assessing risk in insurance

• The underwriting guidelines determine policy eligibility.
• He followed the underwriting guidelines for approval.
• Understanding underwriting guidelines is crucial for the job.

Annuity

Definition: a fixed sum of money paid regularly

• He invested in an annuity for retirement.
• An annuity can provide financial security.
• They discussed the benefits of an annuity in class.

Annuity in a sentence

Reserves

Definition: Additional supplies kept for future use; also refers to saved resources.

• The company has reserves to cover unexpected costs.
• In case of emergency, the reserves can be accessed.
• They tapped into their reserves to fund the project.

Reserves in a sentence

Actuarial Science

Definition: The study of mathematics and statistics to assess risk in finance and insurance.

• Actuarial science is essential for insurance companies.
• He is studying actuarial science in college.
• Understanding actuarial science helps in risk management.

Statistical Analysis

Definition: The process of collecting and analyzing data to understand patterns or trends.

• Statistical analysis helps in making informed decisions.
• He used statistical analysis for his research project.
• Understanding statistical analysis is important in many fields.

Statistical Analysis in a sentence

Forecasting

Definition: The process of making predictions about future events based on data or trends.

• Weather forecasting helps us prepare for storms.
• The company relies on sales forecasting to plan production.
• He learned about forecasting in his economics course.

Forecasting in a sentence

Compliance

Definition: Following rules or standards.

• The company is in compliance with safety regulations.
• They ensured compliance with the new laws.
• She checked for compliance with the guidelines.

Compliance in a sentence

Underwriting Criteria

Definition: The standards used to evaluate risks and determine eligibility for insurance or loans.

• The company has strict underwriting criteria for applicants.
• She reviewed the underwriting criteria before applying.
• Understanding underwriting criteria can improve approval chances.

Loss Ratio

Definition: A measure of the losses incurred in an insurance company compared to the premiums earned.

• A high loss ratio can indicate financial trouble.
• The company monitored its loss ratio closely.
• Understanding loss ratio is key to assessing profitability.

Loss Ratio in a sentence

Actuarial Valuation

Definition: The process of determining the value of an insurance policy or pension.

• An actuarial valuation is necessary for pension planning.
• The report included an actuarial valuation of the funds.
• Understanding actuarial valuation helps in financial planning.

Risk Management

Definition: The identification and assessment of risks followed by coordinated efforts to minimize them.

• Effective risk management is important for businesses.
• He studied risk management in his business course.
• The team focused on risk management strategies.

Risk Management in a sentence

Data Analytics

Definition: The field of examining data to draw conclusions and make decisions.

• Data analytics helps businesses understand their customers.
• She learned about data analytics in her statistics class.
• Effective data analytics can improve company strategies.

Underwriting Cycle

Definition: The pattern of fluctuations in the underwriting market, often related to economic conditions.

• The underwriting cycle affects how companies assess risk.
• He studied the underwriting cycle to predict market trends.
• Understanding the underwriting cycle helps in strategic planning.

Premium Rate

Definition: The amount charged for an insurance policy; often based on risk factors.

• The premium rate for her policy increased this year.
• He compared premium rates from different providers.
• Understanding premium rates is key to finding affordable insurance.

Premium Rate in a sentence

Financial Modeling

Definition: The process of creating a representation of a business's financial performance.

• Financial modeling helps in decision-making for investments.
• He learned financial modeling in his finance course.
• They used financial modeling to predict future profits.

Regulatory Compliance

Definition: following laws and regulations in business practices

• Regulatory compliance is important for any organization.
• They ensure regulatory compliance through regular audits.
• Understanding regulatory compliance helps avoid penalties.

Actuarial Assumptions

Definition: The key factors used in actuarial calculations, like life expectancy.

• Actuarial assumptions affect the pricing of insurance products.
• The team revised the actuarial assumptions based on new data.
• Understanding actuarial assumptions is crucial for accurate modeling.

Stochastic Modeling

Definition: Creating models that incorporate random variables to simulate real-world scenarios.

• Stochastic modeling is useful in finance for risk assessment.
• He learned about stochastic modeling in his statistics class.
• The study used stochastic modeling to predict outcomes.

Pricing Strategy

Definition: A plan for setting prices to achieve business goals.

• The pricing strategy helped increase sales.
• She developed a new pricing strategy for the launch.
• A good pricing strategy considers market conditions.

Experience Rating

Definition: a measure of an individual's past performance or experience

• The experience rating affects job applications.
• They use an experience rating to assess candidates.
• Understanding experience ratings can improve hiring processes.