Profit margin is calculated as: Profit Margin= Premium - Costs/Premium×100 Profit Margin= 500−(400+50)/500 ×100= 50/500 ×100=10%
Python is widely used in actuarial work for statistical analysis, data manipulation, and building predictive models. It is particularly valued for its libraries such as NumPy, Pandas, and SciPy, which are essential in actuarial computations.
Reserves are funds set aside to cover future claim payments. These ensure the company can meet its obligations to policyholders, demonstrating financial stability and compliance with regulatory requirements.
A solvency ratio measures whether an insurance company has enough capital relative to its liabilities, ensuring it can meet long-term claims and obligations to policyholders.
Reinsurance is a risk management strategy where an insurer transfers part of its risk to another company. This helps reduce the financial impact of large claims and ensures stability.
