Actuarial science

Actuarial reserves

In insurance, an actuarial reserve is a reserve set aside for future insurance liabilities. It is generally equal to the actuarial present value of the future cash flows of a contingent event. In the insurance context an actuarial reserve is the present value of the future cash flows of an insurance policy and the total liability of the insurer is the sum of the actuarial reserves for every individual policy. Regulated insurers are required to keep offsetting assets to pay off this future liability. (Wikipedia).

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Related pages

Force of mortality | Actuary | Random variable | Statutory reserve | Life table | Actuarial science | Actuarial notation | Actuarial present value