ACSC 533 Study Guide - Midterm Guide: Actuary, Direct Market, Mathematical Finance
31 Mar 2018
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This refers to selling products directly to customers without the use of agents. Without agents to explain product features and options, direct distribution is usually restricted to basic, simple to understand products. A traditional defined benefit (db) plan is a plan in which an employer/sponsor promises a specified pension benefit on retirement that is predetermined by a set of formula. The benefit is based on the employee"s earnings history, tenure of service and age, rather than depending directly on individual investment returns. In a defined contribution (dc) plan, contributions are paid into an individual account for each member. The risk is on the employee rather than the employer. Casualty actuaries help design products, set a fair and adequate price, and conduct financial analysis of various types of insurance and workers compensation. Casualty insurers spend significant amounts handling claims, especially in liability area where lawyers and experts are required. Technical competencies comprise the actuaries specialized knowledge, skills, and abilities.
