Actuarial Equity

The calculation of an insurance pmium based on crucial factors such as the applicant's age, gender, health, family history and the type of insurance coverage applied for. This allows insurers to treat applicants fairly according to their estimated risk levels.

In automobile insurance, insurers use age as a rating factor in determining inpidual pmiums. Thus, because young people tend to have less favorable driving records as a group, these inpiduals are required to pay out more in pmiums, which normally include the expected value of losses.

Actuarial Equity

The calculation of an insurance pmium based on crucial factors such as the applicant's age, gender, health, family history and the type of insurance coverage applied for. This allows insurers to treat applicants fairly according to their estimated risk levels.

In automobile insurance, insurers use age as a rating factor in determining inpidual pmiums. Thus, because young people tend to have less favorable driving records as a group, these inpiduals are required to pay out more in pmiums, which normally include the expected value of losses.