Which insurance company division is responsible for calculating mortality and morbidity rates, as well as dividends on participating policies?

The actuarial division is responsible for calculating mortality and morbidity rates, which are essential for understanding the risks associated with life and health insurance policies. Actuaries use statistical methods to analyze data related to life expectancy, the likelihood of death, and the prevalence of illnesses. This information is critical for setting premium rates that are both competitive and sufficient to cover future claims.

Furthermore, the actuarial division also plays a vital role in determining the dividends for participating policies. These dividends are paid to policyholders when the insurer performs better than expected, allowing the company to share its financial success with those who hold participating policies. By assessing the overall risk and ensuring that the insurance products remain financially viable, actuaries contribute significantly to the stability and profitability of the insurance company.

In contrast, the underwriting division focuses on evaluating and approving insurance applications based on risk assessments but does not engage in the long-term statistical calculations performed by actuaries. The claims division handles the processing and payment of claims once they are submitted, while the marketing division is responsible for promoting the company’s products but does not involve itself in the technical calculations related to mortality, morbidity, or dividends.