How Insurance Companies Make Money

As an aspiring actuary, it’s important that you understand how insurance companies make money. In fact, it’s a question that could come up in interviews, so it's definitely something you should be prepared for!

So, this is a very important video for you to watch if you're thinking about becoming an actuary and especially if you want to develop your knowledge of actuarial terms and concepts.

If you don't understand this, then you're probably not going to make it as an actuary...

This is because actuaries are actually largely responsible for ensuring that insurance companies make money. So, as an aspiring actuary, you need to understand how insurance companies do this in order to ensure that you can perform your tasks well, and be an in-demand actuarial candidate with thorough insurance knowledge.

So, make sure you watch all the way to the end to have a high level understanding of this concept. You never know when you’ll need to know it!

And, don't forget to comment on this video (or any video I release in January), to get a chance to win the Comment Contest! That's $250 towards your next actuarial exam!! You can find more details here: https://etchedactuarial.com/comment_c...

TIMESTAMPS:
• Intro 0:00​
• Comment Contest details 0:50
• Intro - Claims 2:00
• Intro - Expenses 3:10
• Example 4:05
• How they make money - Premiums 4:20
• How they make money - Investments 5:35
• Example 7:27

LINKS MENTIONED:
• Actuary Accelerator Community (AAC) - https://etchedactuarial.com/accelerator/

P.S. - During the month of January, in the Community, we will be helping you with your 2021 Actuarial Plan. With your year planned out, you could be well on your way to an actuarial job in 2022, so this is valuable information you won't want to miss!

** Note that if you're watching this later, you'll still be able to access all the videos in the Accelerator Community.

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