Actuarial model for actual damages and lost profits to accurately estimate compensation

Abstract

The actuarial model that accounts for actual damages and lost profits is essential for accurately estimating compensation, especially in claims for damages. Actual damages correspond to costs actually incurred, while lost profits represent an estimate of future lost income. Both require detailed documentation for proper determination. The use of actuarial models, based on mortality, survival, and commutation tables, offers an advanced methodology for calculating these damages, particularly in cases of accidents resulting in permanent consequences or death. This technique is fundamental in the field of insurance and the assessment of damages in civil liability, as it allows for the precise quantification of economic losses. This article proposes a comprehensive approach to the actuarial model of actual damages and loss of earnings in legal and insurance contexts. Through a detailed analysis of these tables, the aim is to establish a rigorous methodology that facilitates a fair and equitable assessment of economic damages resulting from accidents, injuries, or deaths. Thus, it contributes to obtaining an accurate estimate of compensation and objectivity in financial redress, strengthening both the administration of justice and decision-making in insurance.