I worked for a P&C and life and health company many years ago as a sales guy. I really loved it but I BSd too much with my clients and didnt sell enough. Anyway I always enjoyed talking to the actuaries and other number crunchers running the place. OK, they did get really boring after about 5 minutes but it amazed me how close they could come on how many 62 or 45 year old males would die this year (not which ones thankfully) and they kept records and comparative studies of their projetions and risk. They pretty much knew awfully close how much risk they had per each segment of buisness each year. The traditional part seemed pretty anti to the science part above. I was to inform the company if one of my insured if one of my policy holders had a German Shepard Dog. The numbers did not bear out they had any more payout with GSD's (collies were the highest) but the company had, at one time, had a massive payout for a GSD attack. I have always htought insurance companies were very intersting. They know pretty much how much they need to do buisness and profit etc.