ACTRA
consulting
Actuarial opinion
An actuarial opinion is intended to calculate the amount of loss caused by certain events that impact employees and employers.
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In order to carry out a quantitative assessment, the set of issues must be mapped, so that it is possible to perform a calculation and explain the findings to the client/attorney in a clear and accessible way, therefore it is very important to coordinate expectations at the beginning of the work (materials required for providing an expert witness, the manner of accompaniment, deliverables he will receive, schedules, cost).
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Obtaining an actuarial opinion will allow you to obtain a financial price estimate for the relevant financial or bodily damage, which in many cases will allow you to exhaust the process with a third party through a mediation process or through direct negotiation without the intervention of legal proceedings, where in some cases it will be necessary to turn to legal courts.
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A decision regarding legal action should be carefully examined together with a lawyer and the actuary, in order to consider all the advantages and disadvantages of the decision.
An actuary who provides opinion
In light of the complexity of various opinions that actuary faces, it is highly recommended to use the opinion of a certified actuary who is a full member of the Association of Actuaries, which is the exclusive body for the certification and ongoing training of actuaries in Israel.
Alexey Trakshinsky is a full member of the Israeli Association of Actuaries, and a Certified Risk Analyst of CGA association, Oxford, UK.
Actuarial opinions deal with a variety of issues that require professional knowledge and experience, when the valuation of the losses may reach substantial amounts of hundreds of thousands of shekels, even over a million shekels, therefore the main emphasis of the client or his lawyer should be on the identity of the actuary who will perform the calculation of the damage.
The Israeli Association of Actuaries has existed since 1946, defining the standards of training, professionalism, and ethics in accordance with the requirements of the international association. As of 2014, it is in a reciprocity agreement with the Institute and Faculty of Actuaries (IFoA)
Subjects detailed in an actuarial opinion
First, the main goal of an actuary who communicates with a client for the purpose of providing an actuarial opinion is to submit a clear and sufficiently detailed opinion to explain to the client the results of the calculation and their meaning, including topics such as:
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The purpose of the opinion.
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Details of actuary's experience and education.
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The basic assumptions (an actuary must show responsibility in determining the assumptions on which he relies in his calculations - check that the assumptions can be supported using accepted actuarial principles, information received from the client and/or lawyer, laws and/or regulations).
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Details of information available to the actuary to perform the work.
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Discussion - an important chapter that explains the basic assumptions and principles of the calculation, including an explanation of the effect of laws and regulations on the results of the calculation.
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The calculation results.
Examples of events experienced by the firm's clients, because of which an actuarial opinion was required
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Wage losses - that have been paid to the employee according to the contract / other agreement.
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The lack of proper insurance coverage, such as disability (income protection) or life insurance coverage.
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Valuation of receipts - whether to value past payments or the present value of future payments.
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Error in judgment at the stage of drafting the policy structure of an insurance agent.
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Examining the value of receipts from one insurer to offset the value of receipts from the payments of one insurer.
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Professional liability - due to damage to the physical or mental state of the person who underwent some medical procedure.
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Work accidents or traffic accidents that result in disability or residual benefit payments from the National Insurance and the insurance company or pension fund.
There are additional reasons that require the submission of the actuarial opinion, and every client's facts and circumstances are different.
We treat every engagement with professionalism and tailor our services to fit the specific needs of our clients.
