Unlocking Actuarial Terms Through Movies, Series & Superheroes
Understanding actuarial terms can sometimes feel like decoding ancient Latin — unless you’re one of us. But what if we told you that these “dry” concepts are everywhere in your favorite shows, movies, and memes?
From Marvel’s Risk Pooling to Stranger Things’ Discounting, we’re giving classic actuarial science a blockbuster twist. Whether you’re a student just entering the field or a qualified actuary looking for fresh takes, this is the content you never knew you needed.
Risk Pooling = The Avengers
“Alone, they’re vulnerable. Together, they’re invincible.”
When insurers combine individual risks into one big pool to spread the loss probability, it’s called risk pooling.
Think: Iron Man, Thor, Hulk, Black Widow — different powers (risks), same goal. They’re stronger as a group — just like insurers pooling together high-risk and low-risk individuals to stabilize premiums and claims.
Probability = Doctor Strange’s One-in-14-Million Outcome
“We’re in the endgame now.”
Probability is at the heart of actuarial science. Doctor Strange saw 14,000,605 outcomes and chose one path to beat Thanos.
Actuaries do the same (but with Excel instead of sorcery). Whether pricing insurance or estimating mortality, it’s all about picking the most probable outcome.
The probability of finding out about Actuarial Science and becoming one is as small as Doctor Strange’s one. Here’s the guide on how to become an Actuary!
Adverse Selection = Suicide Squad’s Insurance Nightmare
“Only the riskiest dare to apply.”
Adverse selection occurs when higher-risk individuals are more likely to buy insurance than lower-risk ones.
Think: The Suicide Squad. If they were applying for life insurance, they’d all be approved, but the insurer wouldn’t survive past episode 2.
Moral Hazard = Walter White in Breaking Bad
“With great insurance comes great temptation.”
Once insured, Walter White’s risk appetite skyrocketed. This is classic moral hazard — insured people may take more risks because they won’t bear the full cost of failure.
Catastrophe Modelling = Don’t Look Up
“Predict rare but disastrous events — before they happen.”
Catastrophe models simulate extreme, low-frequency events like hurricanes, earthquakes, or comets (literally!). Insurers use them to stay solvent when rare disasters strike.
Reinsurance = Batman’s Backup Plan
“Every insurer needs a fallback.”
When things go haywire, insurers fall back on reinsurance — just like Batman never enters a fight without a plan B. Reinsurers help insurers manage big or unexpected losses.
Time Value of Money = Marty McFly in Back to the Future
“₹1,000 today is worth more than ₹1,000 tomorrow.”
Money today can be invested and grow — hence the concept of discounting future cash flows. Actuaries use this to determine the present value of future liabilities or premiums.
Underwriting = Sorting Hat from Harry Potter
“Underwriting decides your fate… and premium.”
Just like the Sorting Hat judges Hogwarts students, underwriters assess individual risk and assign premium levels. Fit and healthy? You get Gryffindor. Smoker with hypertension? Welcome to Slytherin, with a higher premium.
Loss Ratio = Monica Geller’s Cleaning Budget
“Claims paid / premiums earned = how efficient you are.”
Loss ratio tells insurers how much of their earned premiums were paid out as claims. Monica would track it all in spreadsheets — obsessively.
Credibility Theory = Sherlock Holmes’s Gut + Data
“Believe what you see… unless statistics say otherwise.”
Credibility theory balances observed experience vs. broader data sets. Just like Sherlock uses both intuition and evidence to solve crimes, actuaries weigh internal claims data against industry trends.
Survival Analysis = Squid Game Strategy
“Who’s likely to survive… and for how long?”
Actuaries use survival analysis in life insurance and pensions. In Squid Game, it’s deadly literal — but in actuarial models, it helps insurers calculate life expectancy, retention rates, and policy duration.
Reserving = Tony Stark’s Contingency Plan
“Planning for liabilities that haven’t even occurred yet.”
In general insurance, reserving is setting aside money to cover future claims. Tony Stark did the same: he prepared for threats no one else saw coming.
In case you want to learn more about the reserving methods, we have Chain Ladder Method (CLM), Bornhuetter Ferguson (BF) Method and Expected Loss Ratio Method with examples on our website!
Bonus: Pop Culture is More Actuarial Than You Think
- Money Heist = Stochastic Modelling: Professor plans for every single possibility.
- Stranger Things = Uncertainty in Assumptions: The Upside Down is your “tail event.”
- Game of Thrones = Risk Appetite: “Chaos isn’t a pit — it’s a ladder.”
Final Thoughts
Explaining actuarial concepts through pop culture isn’t just fun — it makes the field more approachable, especially for newcomers. If you’ve ever struggled to explain what you do at parties (or even to your mom), now you have superhero backup.
What’s Your Pop Culture Analogy?
Comment with your own comparison or tag us with #ActuarialPopCulture — and you could be featured in the next post from The Actuarial Club!