A statistician who computes insurance andPensionrates and premiums on the basis of the experience of people sharing similar age and health characteristics. "Actuaries." Education: Actuaries must first earn an undergraduate degree in mathematics, statistics, actuarial science, or business.Typical coursework includes economics, applied statistics, finance, accounting, calculus, and computer science. A pension actuary has the task of calculating and budgeting for funding and spending pensions for retired workers. Investopedia requires writers to use primary sources to support their work. Actuaries are highly sought-after professionals who develop and communicate solutions for complex financial issues. Why Do “Left” And “Right” Mean Liberal And Conservative? See more. English Language Learners Definition of actuary. Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Actuaries perform complex calculations to determine the likelihood of various outcomes related to accidents, illnesses, consumer demand, and investments. The convergence of these fields for the actuary profession is called actuarial science. U.S. Bureau of Labor Statistics. An actuary is a business professional who analyzes the financial consequences of risk. This advancement made it easier for insurance brokers to quantify the risk of taking on a new insurance policy. They use mathematics, statistics, and financial theory to assess the risk that an event will occur and help businesses and clients develop policies that minimize the cost of that risk. ‘A responsible actuary and pension fund trustees would never have allowed this to happen.’ ‘The result was that actuaries said pension funds had more money than they needed.’ ‘Without his job as an insurance actuary the 66-year-old Schmidt has no identity.’ ‘He was an actuary in the Skandia Insurance Company from 1904 to 1907.’ a person qualified to calculate commercial risks and probabilities involving uncertain future events, esp in such contexts as life assurance. The offers that appear in this table are from partnerships from which Investopedia receives compensation. An actuary is a professional who assesses and manages the risks of financial investments, insurance policies and other potentially risky ventures. The broadest definition of an actuary is someone who analyzes the financial consequences of risk. Most actuaries work in the insurance industry and help insurance companies create and price insurance policies based on the likelihood that they will have to … Accessed on Jan. 14, 2021. Actuaries are experts in: Evaluating the likelihood of future events—using numbers, not crystal balls. While primarily used for insurance policies and investments, actuarial science is applicable in any situation where risk and uncertainty are present. Actuaries’ work is essential to the insurance industry. ; Certification: To work as an actuary you must earn an actuarial designation from the Society of Actuaries (SOA) or the Casualty Actuarial … actuary meaning: 1. a person who calculates how likely accidents, such as fire, flood, or loss of property, are to…. Employers of today’s actuaries have decided opinions about actuaries, and whether or not you fit the image, you are being impacted by this image. Actuaries analyze the financial costs of risk and uncertainty. To pursue the career, you don't have to major in actuarial science–majors in math, statistics, finance, and economics also provide a solid foundation for students considering a career as an actuary. ‘A responsible actuary and pension fund trustees would never have allowed this to happen.’ ‘The result was that actuaries said pension funds had more money than they needed.’ ‘Without his job as an insurance actuary the 66-year-old Schmidt has no identity.’ ‘He was an actuary in the Skandia Insurance Company from 1904 to 1907.’ Actuarial service is one way corporations determine, assess, and plan for the financial impact of risk. “Inauguration” vs. “Swearing In”: What’s The Difference? © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins The concept of insurance has existed since the late 17th century, when risk assessment became increasingly scientific. Actuarial Age is an individual's life expectancy based on calculations and statistical modeling. Where is the actuary who can appraise the value of a man's opinions? Actuaries possess a unique mix of mathematical, analytical, communication and management skills. 2 : relating to statistical calculation especially of life expectancy. Additionally, actuaries are commonly employed to examine the risk of investments in the financial world. actuary: A statistician who computes insurance and Pension rates and premiums on the basis of the experience of people sharing similar age and health characteristics. A mathematician who uses statistics to calculate insurance premiums. Actuaries, on the other hand, do not particularly care about past events unless such events have direct ramifications on the future. We are the leading professionals in finding ways to manage risk. We also reference original research from other reputable publishers where appropriate. Define Actuarial Expert. Dictionary.com Unabridged With this, they help businesses grow and provide value to their customers. An actuary assesses and manages the risks of financial investments and insurance policies, among other things. Education General Actuaries must have excellent math, finance and budgeting skills. Public and private institutions rely heavily on actuarial science to determine the relative risk of various decisions; as such, actuaries are trained and tested extensively before they are allowed to practice. Actuary definition, a person who computes premium rates, dividends, risks, etc., according to probabilities based on statistical records. The future is volatile and full of risk yet very few could predict the 2008 market crash or the 2014 oil price crash. The New Dictionary of Cultural Literacy, Third Edition Actuaries work is essential to the insurance industry. Government Actuary is an employee of the U.K. government who works for the Government Actuary's Department (GAD). Enrolled Actuaries Many pension actuaries are Enrolled Actuaries - individuals who have satisfied the standards and qualifications of the Joint Board for the Enrollment of Actuaries and have been approved by the Board to perform actuarial services required under ERISA. : a person whose job is to tell insurance companies how much they should charge people for insurance based on risks. A statistician who computes insurance risks and premiums. Duties Actuaries typically do the following: This math professor teaches the subject that all future actuaries love. Based on the Random House Unabridged Dictionary, © Random House, Inc. 2021, Collins English Dictionary - Complete & Unabridged 2012 Digital Edition An insurance actuary is a professional who analyzes financial risk using mathematics, statistics, and financial theories. Are you learning Spanish? Employers of today’s actuaries have decided opinions about actuaries, and whether or not you fit the image, you are being impacted by this image. While actuarial science is most commonly applied to mortality analysis for life insurance, many of the same procedures are also used for property, liability, and other kinds of insurance. Either way, this quiz on Spanish words for animals is for you. What Is The Difference Between “It’s” And “Its”? An actuary is a business professional who deals with the financial impact of risk and uncertainty. “Capital” vs. “Capitol”: Do You Know Where You’re Going? actuary - someone versed in the collection and interpretation of numerical data (especially someone who uses statistics to calculate insurance premiums) An actuary is a professional statistician who calculates the risks associated with insurance coverage and the likelihood that claims will be filed or that benefits will have to be paid out. In short, the definition of an actuary is essentially to manage risk. An actuary makes calculations to decide the amount that needs to be contributed into the plan to ensure the target retirement income goal is … You can learn more about the standards we follow in producing accurate, unbiased content in our. An actuary assesses and manages the risks of financial investments, insurance policies, and other potentially risky ventures. Actuaries, on the other hand, do not particularly care about past events unless such events have direct ramifications on the future. Keep scrolling for … Most actuaries work in the insurance industry and help insurance companies create and price insurance policies based on the likelihood that they will have to pay out claims. Actuarial science is currently one of the fastest-growing and better-paying industries in the United States.. / -eri / plural actuaries a person whose job is to calculate risk for insurance companies and pension funds, especially the age to which people are expected to live. Actuaries are problem solvers and strategic thinkers, who use their mathematical skills to help measure the probability and risk of future events. Actuaries use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. Definition. An actuary is a business professional who analyzes the financial consequences of risk. Actuaries measure and manage risk. Actuary Definition. 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