Importance of statistics to insurance

Importance of statistical records in insurance.

• Actuaries make extensive use of statistics in insurance
• Insurance contracts are based on the statistics.
• Risk is asses to determine whether:
• It can be accepted or not.
• Help in determining a fair premium.
• At a particular place
• In a particular year.
• Enables insurance companies to:
• Cover against claims from insured persons and
• expenses incurred by the insurance companies.
• Cover profit of the insurance companies.

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