Which entity determines the actuarial tables used in insurance?

The entity responsible for determining the actuarial tables used in insurance is primarily composed of insurance companies and actuaries. Actuarial tables are statistical tables used by actuaries to assess risk and set rates for insurance products based on various factors including mortality, morbidity, and other life events. Actuaries apply their specialized knowledge of mathematics, statistics, and financial theory to create these tables, which are essential for calculating premiums and reserves.

Insurance companies rely on the expertise of actuaries to build their models that predict future claims based on current and historical data. This development process helps ensure that premiums are appropriately set to cover future liabilities while still remaining competitive in the market. While regulators do influence how these tables are applied in terms of compliance with industry standards, the fundamental creation and determination of the tables is a function of the actuarial science practiced by insurance professionals within the companies.

Policyholders and the government may have a role in the broader context of insurance regulation and consumer protections, but they do not directly determine the actuarial tables themselves.