On both the life and casualty sides, the classical function of actuaries is to calculate premiums and reserves for insurance policies covering various risks.

Insurers use actuarial methods to calculate appropriate premiums, which is similar to calculating gambling odds.

The insurer calculates premiums based on the presumed risks associated with the driver's actual driving habits.

Thus, in a community rated market, the insurer evaluates the risk factors of market population, and not those of any one person when calculating premiums.

But the Congressional Budget Office said there was no reliable method of calculating premiums in advance, to take account of the risks presented by various patients.

Insurance companies already include miles driven as one of many factors in calculating premiums, but her plan would make the correlation much more direct.

A similar ban on using age to calculate premiums would cut the cost of travel insurance for older people, who often pay much more than younger travellers.

To see that all individuals had access to affordable coverage four years ago, the state prohibited insurers from taking an applicant's health into account in calculating premiums.

Insurance actuaries across Europe are now performing an unexpected - and totally unnecessary - task on top of their normal job of calculating premiums.