What is an actuary?
An actuary is a statistician who uses data analysis to calculate financial risk.
A great example of an actuary at work would be determining how much an insurance company should charge for homeowner insurance. Actuaries use research to propose a payment plan that is profitable and safe for the insurance company.
An actuary might play a role in your lawsuit by determining the ‘value’ of money and how it changes over time. For example, actuaries help calculate the value of wages you lost because you were unable to work due to the accident and your injuries. If you are severely injured, actuaries help forecast the amounts required for someone to care for you in the future. For this reason, an actuary is crucial in correctly indicating how much you are entitled to as someone involved in a personal injury case.
Inflation and interest rates both play a role in the changes in the dollar value. If you were owed $10,000 in 2000 and didn’t get paid until 2014, the value of that sum would have changed considerably. Several provinces have adopted discount rates for civil claims to accommodate these shifts.
What is a discount rate?
Discount rates are percentages removed from annual payments, designed to help accurately reflect the dollar’s current value and ensure the party who injured you pays you a fair amount. However, not all provinces share the same discount rates.
The discount rate for motor vehicle accidents in Nova Scotia is 2.5%.
Actuaries play a vital role in personal injury and insurance law. If you have a claim that you believe requires an actuary’s advice, do not hesitate to call us at 1-888-434-0398 or contact us here.
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MacGillivray Law is a personal injury law firm with offices in Nova Scotia, New Brunswick, and Newfoundland and Labrador. We serve clients all across Canada.
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