Many scenarios create the need for a company to obtain an
actuarial valuation. But what is an actuarial valuation and why
does a company need one? What is a company's responsibility
relating to the information used to generate the valuation? How
does the company assess if the output of the report is accurate?
Although this article will not address all the details of an
actuarial valuation report, we will discuss these key questions to
help readers understand and obtain accurate actuarial analysis for
your company.
An actuarial valuation is a mathematical analysis performed
using various inputs and assumptions in order to estimate a future
liability or asset as of a different point in time, typically at
the company's year-end date. Examples are establishing the
liability of a defined benefit pension plan or other
post-retirement benefit, a self-funded workers' compensation or
malpractice insurance plan. The assumptions used are generally
derived from long-term data
