Actuarial Modeling

Actuarial modeling is the mathematical quantification of financial risk for insurance, pensions, and long-term liabilities. Actuaries use probability, statistics, and financial mathematics to price insurance, set pension contributions, and calculate regulatory capital requirements. Core: estimate future cash flows (when do people claim? how much?), discount to present value (what's it worth today?), test sensitivity (if claims are 10% higher, what breaks?), simulate uncertainty (stochastic models for tail risk).