Actuarial control cycle

The actuarial control cycle is the process of using math and statistics to make sure insurance companies are using the right amount of money to pay for all the claims that their customers need. An insurance company sets aside money for claims, but it's important to make sure that they don't set aside too much or too little. The actuarial control cycle helps insurance companies figure this out. A trained actuary (a person who works with numbers and risk) will first look at all the claims that the insurance company is likely to pay out. Then they will use math and statistics to come up with the right amount of money to set aside. The company also uses this process to check that the money they are setting aside is enough to cover all the claims customers make.