Loading [MathJax]/jax/output/SVG/fonts/TeX/fontdata.js
Şahin, Şule, and Gary Venter. 2023. “The Actuary Takes the Stand: Compensation for Personal Injury.” Variance 16 (2).
Download all (5)
  • Figure 1. Average annual gross pay for full time and part time male and female employees
  • Figure 2. Spline fit for male full-time annual gross earnings
  • Figure 3. Spline fit for male part-time annual gross earnings
  • Figure 4. Spline fit for female full-time annual gross earnings
  • Figure 5. Spline fit for female part-time annual gross earnings


Consulting actuaries are often involved in litigation and other legal proceedings as advisors on broad range of actuarial issues. Alternatively, they act as expert witnesses, giving evidence on issues requiring their expertise. An actuarial expert witness is crucial for quantifying monetary compensation in personal injury lawsuits. Personal injury and wrongful death cases are an important part of casualty insurance indemnities. The fund created to compensate victims and survivors of the September 11, 2001 attacks is an example of a similar casualty insurance exercise. The aim of this paper is to improve the compensation calculation for loss of future income to obtain fairer amounts and help the reconciliation process by introducing age-earnings profiles. We propose a hybrid methodology which combines the UK and US systems including both positive and negative contingencies. These two systems are reference approaches used in many countries, and the hybrid methodology can help provide perspective and guidelines for application. We employ semiparametric regression and smoothing splines to construct what we call the promotion tables and illustrate how they could be used in the compensation calculations in the UK.