This is where the expertise of Actuary Consulting becomes essential. Our actuaries apply specialised financial and statistical models to convert uncertain future costs into a clear, defensible present-day value.
Using the same rigorous principles relied upon in insurance and pension modelling, we quantify both current and future economic damages with scientific precision — ensuring outcomes that are robust, impartial, and able to withstand legal scrutiny.
Speak to One of Our Actuaries
Understanding Economic Loss
In medical negligence matters, economic loss typically falls into several key categories, each requiring careful actuarial assessment.
1. Loss of Earnings and Earning Capacity
For many claimants, the largest portion of their claim arises when an injury permanently reduces or prevents their ability to earn an income.
The actuary must calculate the present value of the income the claimant would likely have earned without the injury and compare this to what they are now expected to earn.
This includes:
Pre-Morbid Career Projection:
We establish the claimant’s likely career trajectory based on education, skills, employment history, and industry trends.
Contingencies:
Real-world risks such as unemployment, illness, or early death are factored into both pre-injury and post-injury scenarios.
Discounting Future Income:
All projected future losses are mathematically discounted to a single lump-sum amount that fairly compensates the claimant today.
2. Future Medical and Care Costs
These claims include all expenses necessary to support the claimant for the rest of their life, such as:
ongoing medical treatment and surgery
therapy and rehabilitation
assistive devices like wheelchairs or prosthetics
long-term nursing or caregiver support
home modifications
Actuaries forecast these costs while considering life expectancy, medical inflation, and how frequently expenses will occur. The result is a defensible lump sum that ensures the claimant’s future needs are fully funded.
Loss of Support and RAF Applications
Actuaries also quantify damages in cases where the primary income earner has died — commonly referred to as loss of support claims.
The methodology mirrors the calculations used in Road Accident Fund (RAF) matters:
Estimating the deceased’s future earnings
Determining personal expenditure (the amount the deceased would have used for themselves)
Calculating dependency loss, representing what would have supported the dependants
Discounting the future loss to a present-day value
This structured, evidence-based approach ensures dependants are financially protected after the loss of a breadwinner due to medical negligence.
Explore Our Full Range of Services
Why Actuary Consulting Is the Expert Choice
When accuracy matters and the outcome can change a client’s future, you need actuarial reports that are detailed, transparent, and strong enough to stand up in court. Actuary Consulting is trusted nationwide for forensic actuarial valuations. Here’s why:
Expert Witness Authority
Our actuaries regularly present and defend their calculations in the High Court. Their experience strengthens the credibility of your case and reinforces the reliability of your claim.
No-Win, No-Fee
For claimant attorneys, we offer a no-win, no-fee model on our reports, removing the burden of upfront costs and reducing financial risk.
Fast Turnaround, Nationwide Coverage
Legal timelines are demanding. We deliver rapid, high-quality reports and operate with a nationwide footprint, ensuring accessible and efficient service across South Africa.
Future economic losses are complex — but they should never compromise your client’s compensation.
Partner with Actuary Consulting for valuations that transform uncertainty into clear, scientifically grounded damages calculations.