Developmental Trend of Insurance Actuarial System and the Influences on Modern Financial Industry

Abstract

This paper analyzes the developmental trend of insurance actuarial system and the related influences on modern financial industry. The basic principle of insurance is to many premium to the underwriter, policyholder , when the risk occurred shall be borne by the insurer. By paying a small amount of this mechanism make policyholder and fixed premium, it will be a lot of uncertain losses to the insurance company or underwriter; Insurers use premium income on the one hand, ensure the normal conduct of compensation, while on the other hand, through the analysis and calculation to the reasonable allocate funds, improve the investment benefit of insurance funds, that eventually make policyholder and underwriter gains. Our paper analyzes the basic principles of the insurance actuarial system and discusses the corresponding influences on the modern financial system.