Professional Liability Insurance for Actuaries

We offer professional liability insurance, also known as errors and omissions (E&O) insurance, to actuaries and actuarial consulting firms in all fields, including pension actuaries, property and casualty (P&C) actuaries, life actuaries, and health actuaries.

Actuaries use mathematics, statistics and financial projections in order to analyze risk and provide estimates for the cost of risk, including the cost of risk transfer. Actuaries face significant exposure to allegations of errors, omissions, and negligence including the following*:

• Failure to appropriately compile actuarial data
• Failure to appropriately reconcile actuarial data
• Failure to follow actuarial standards of practice
• Failure to use reasonable actuarial assumptions
• Failure to use reasonable actuarial methodologies
• Underfunded pension plans
• Calculation errors
• Actuarial projections used in mergers and acquisitions
• Failure to allow for reinsurance transfer of risk
• Failure to adequately document actuarial analysis and projections
• Excessive or inadequate actuarial rates

* The coverage offered varies by insurance company and is subject to limitations and exclusions. Please refer to the actual insurance policy for details regarding coverage, exclusions, and limitations.

The professional liability coverage for actuaries is written on a claims made policy, which means that it's the policy that is in place at the time a claim is reported that responds to the claim. The wrongful act must have taken place on or after the retroactive date in order to be subject to coverage under the policy. The retroactive date is usually set as the inception date of the initial policy and should not be changed at policy renewal. Actuaries who retire or otherwise don't renew their coverage have the option to purchase "tail" coverage under their professional liability insurance policy in order to get coverage for claims that may be reported after the policy expires.

Actuaries are easy targets for lawsuits because of the technical nature of actuarial work, the variability associated with future outcomes and the long term nature of some lines of insurance. Actuaries have been involved in multi-million dollar lawsuits which can last years and incur high defense costs. It is therefore vital for actuaries to have errors and omissions insurance coverage.

We understand the specific needs that actuarial consultants have and we have access to all insurance companies that write professional liability insurance for actuaries. Give us a call to discuss your actuarial errors and omissions insurance needs.