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ACTUARIAL-BASICS5 MIN READ

Data Quality Is a Judgment Call

Assess whether actuarial data are appropriate, sufficient, and reviewed for the assignment.

A clean file is not the same as data suitable for actuarial use. Appropriate Ask whether the data match the risk, period, coverage, and intended decision. The question is not only whether fields are populated; it is whether the fields mean what the analysis assumes they mean. Sufficient Volume matters, but so does relevance. A thousand homogeneous claims may support a basic frequency view better than a million mixed records with shifting definitions. Reviewed A review looks for obvious unreasonable values, missing definitions, breaks from prior data, and relationships that do not make sense. It does not certify that every…

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