Who is responsible for calculating the principal elements of the life insurance premium to determine the premium rates charged?

The actuary is the professional responsible for calculating the principal elements of life insurance premiums. This includes assessing various factors such as mortality rates, interest rates, and expense loads to accurately determine premium rates. Actuaries use complex mathematical models and statistical analysis to estimate the likelihood of certain events occurring and to evaluate the financial implications of insurance products. Their expertise ensures that premiums are not only competitive but also sustainable for the insurance company over time.

While life agents may facilitate the sale of insurance products, they do not have the responsibility or authority to calculate premiums. Similarly, senior statisticians may work with data but are typically not involved directly in the insurance pricing process. The insurance commissioner oversees the regulation and compliance of insurance companies but is not responsible for determining premium rates. Therefore, the actuary holds a critical role that directly influences the financial health and operational viability of life insurance products through precise premium calculations.