The Relationship between Actuarial Mathematics and Auto Insurance
Author:
Jenny DavenportMentor:
Yousef Daneshbod, Professor of Mathematics, University of La VerneThe Relationship between Actuarial Mathematics and Auto Insurance Author: Jenny Davenport, University of La Verne Mentor: Dr. Yousef Daneshbod, Mathematics Division, University of La Verne Auto insurance is a rite of passage for many drivers. The ability to successfully determine a premium of an auto insurance policy is highly dependent on actuarial mathematics. Actuaries are a group of sophisticated mathematicians who assess risk based on past data/statistics. Insurance companies that do not use actuaries to implement actuarial mathematics often fail. The immediate objective of this paper is to discuss various factors and mathematical tools, so that a premium can be determined.