For insurance companies, the liabilities comprise mostly reserves for claims on the products sold by the life insurer.These reserves are computed by:

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Actuaries are professionals who analyze the financial costs of risk and uncertainty, and they use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. In the context of insurance companies, actuaries are primarily responsible for computing reserves for claims on the products sold by life insurers. These reserves are crucial for ensuring that the company can meet its future policyholder obligations.

For Insurance Companies, the Liabilities Comprise Mostly Reserves for Claims