What is an actuarial study?

• A. A document prepared by a qualified actuary for private insurers or self-insured groups, serving as the basis for the actuarial summary.
• B. A summary of medical treatments.
• C. An evaluation of benefits for a single case.
• D. A financial report prepared by the DEU.

Answer: (A)

An actuarial study is a technical analysis prepared by a qualified actuary to estimate future costs and funding needs for a private insurer or self-insured group. It looks at expected claim costs, trend factors, interest, and demographic assumptions to project liabilities and required reserves or premiums. This study provides the foundation for the actuarial summary that accompanies a self‑insurance plan, guiding decisions on funding and solvency. It’s not simply a summary of medical treatments, not a single-case benefits evaluation, and not a financial report produced by a department—the value lies in the long‑term, risk-based projections produced by an actuary.