The Actuarial Aspects of Compensation for Loss of Support

Synopsis

The purpose of the paper is to stimulate a discussion among the members of the actuarial profession on the part the actuary can play in the assessment of compensation for loss of support, in order that some consistency of approach (which the authors regard as essential) can be evolved.

The paper commences with a discussion on the unique ability of the actuary to determine the capital value of a given series of future payments, contingent upon human survival, and the significant part that this can play in the assessment of compensation for loss of support. The extent to which this ability is accepted by the Courts is discussed, and reference is made in this regard to the paper by J. H. Prevett in J.I.A., Vol. 94, pp. 293 et seq.

The authors then proceed to consider the technical aspects of valuing the loss of future support, drawing particular attention to the need for the actuary not to be held responsible for the non-technical aspects.

The paper concludes with a consideration of the general aspects of the subject, such as the professional conduct of the actuary at Court appear ances and other stages of a claim, the alternative of awarding compensation in the form of an income, and the use of actuarial assessors.