definition of an actuary

actuary - someone versed in the collection and interpretation of numerical data (especially someone who uses statistics to calculate insurance premiums) Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Designing creative ways to reduce the likelihood of undesirable events. An actuary makes calculations to decide the amount that needs to be contributed into the plan to ensure the target retirement income goal is reached. This advancement made it easier for insurance brokers to quantify the risk of taking on a new insurance policy. With this, they help businesses grow and provide value to their customers. The impact of actuary recommendations on life insurance premiums can encourage behaviors that would result in lower premiums, like quitting smoking. In short, the definition of an actuary is essentially to manage risk. A pension actuary has the task of calculating and budgeting for funding and spending pensions for retired workers. The profession also includes statisticians who provide expert data analysis on risk assessment and risk management for the financial services sector. 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. Actuary Definition. Are you learning Spanish? An actuary assesses and manages the risks of financial investments, insurance policies, and other potentially risky ventures. Most major investment banks employ staff actuaries on retainer, and businesses making big one-time decisions often hire consulting actuaries. “Affect” vs. “Effect”: Use The Correct Word Every Time. ‘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.’ Actuaries measure and manage risk. An actuary assesses and manages the risks of financial investments and insurance policies, among other things. An actuary is a professional who assesses and manages the risks of financial investments, insurance policies and other potentially risky ventures. This may include carrying out calculations, modelling or the rendering of advice, recommendations, findings, or opinions. He finally became an actuary at London and was prominent in radical associations. The Society of Actuaries best prepares individuals for risk management careers in traditional and emerging industries. This math professor teaches the subject that all future actuaries love. The concept of insurance has existed since the late 17th century, when risk assessment became increasingly scientific. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The future is volatile and full of risk yet very few could predict the 2008 market crash or the 2014 oil price crash. The commissioners standard ordinary mortality table is an actuarial table that computes the minimum nonforfeiture values of ordinary life insurance policies. Actuaries use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. Actuaries must have excellent math, finance and budgeting skills. "Actuaries." In short, the definition of an actuary is essentially to manage risk. Why Do “Left” And “Right” Mean Liberal And Conservative? Or do you just have an interest in foreign languages? The New Dictionary of Cultural Literacy, Third Edition “Inauguration” vs. “Swearing In”: What’s The Difference? Health insurance actuaries help develop long-term care and health insurance policies by predicting expected costs of providing care under the terms of an insurance contract. actuarial meaning: 1. relating to the work of an actuary, or to the job of being an actuary: 2. relating to the work…. English Language Learners Definition of actuary. / -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. Actuarial science is a discipline that assesses financial risks in the insurance and finance fields, using mathematical and statistical methods. 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. Learn more. Actuaries have excellent knowledge and skills in mathematics, statistics and business management. An actuary is a business professional who analyzes the financial consequences of risk. 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. Definition. See the full definition for actuary in the English Language Learners Dictionary. They apply their abilities to create social impact, inform high-level strategic decisions and have a significant … The most traditional actuarial practices revolve around analyzing various factors related to life expectancy, constructing mortality tables that provide a measure of predictability, and making recommendations to brokers in individual cases. Define Actuarial Expert. 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. They utilize specialized computer software to crunch numbers and generate tables, graphs, and reports regarding their findings. An actuary is a business professional who deals with the financial impact of risk and uncertainty. Where is the actuary who can appraise the value of a man's opinions? 2 : relating to statistical calculation especially of life expectancy. Actuaries analyze the financial costs of risk and uncertainty. Actuarial service is one way corporations determine, assess, and plan for the financial impact of risk. © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Actuarial science is used to evaluate and predict future payouts for insurance and other financial industries. means a senior actuary reasonably agreed to by the parties who is a qualified Fellow of the Society of Actuaries at a nationally-recognized actuarial or accounting firm that is not the auditor or independent accounting firm of either of the parties hereto who is otherwise independent and impartial and who has at least ten (10) years’ experience … Accessed on Jan. 14, 2021. Investopedia requires writers to use primary sources to support their work. Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012. An actuary makes calculations to decide the amount that needs to be contributed into the plan to ensure the target retirement income goal is … 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 … Actuarial Age is an individual's life expectancy based on calculations and statistical modeling. Actuaries analyze the financial costs of risk and uncertainty. All rights reserved. Actuarial science is a discipline that assesses financial risks in the insurance and finance fields, using mathematical and statistical methods. Does “Bimonthly” Mean Twice A Month Or Every Two Months? Insurance companies want to take on policies that offer little risk. Their predictions are based on numer… Actuaries, on the other hand, do not particularly care about past events unless such events have direct ramifications on the future. An actuary is a person conversant in the profession of mitigating and managing the risks associated with financial investments and other ventures that are potentially risky. An actuary will tell you that I am likely to outlive Colonel Cowles. An actuary may be allowed to be accurate in this matter, of which I was reminded by what an actuary wrote of another actuary. Based on the Random House Unabridged Dictionary, © Random House, Inc. 2021, Collins English Dictionary - Complete & Unabridged 2012 Digital Edition Commissioners Standard Ordinary Mortality Table. Borderline risk refers to an insurance policy applicant that an insurance company may be unable to cover after a full risk evaluation. 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. 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. The actuarial profession, and actuaries in general, are suffering today from a perception problem. (noun) Government Actuary is an employee of the U.K. government who works for the Government Actuary's Department (GAD). Decreasing the impact of undesirable events that do occur. A statistician who computes insurance andPensionrates and premiums on the basis of the experience of people sharing similar age and health characteristics. Competent actuarial practice can help mitigate the overall risk of a portfolio. Additionally, actuaries are commonly employed to examine the risk of investments in the financial world. Actuaries must have excellent math, finance and budgeting skills. While primarily used for insurance policies and investments, actuarial science is applicable in any situation where risk and uncertainty are present. Actuaries perform complex calculations to determine the likelihood of various outcomes related to accidents, illnesses, consumer demand, and investments. Definition of 'Actuaries' Definition: A person with expertise in the fields of economics, statistics and mathematics, who helps in risk assessment and estimation of premiums etc for an insurance business, is called an actuary. Explore your options in one of twenty practice areas and watch as Jennifer Gerstorff, FSA, MAAA, shares her journey to becoming an actuary. Either way, this quiz on Spanish words for animals is for you. Other Words from actuarial Example Sentences Learn More about actuarial. We also reference original research from other reputable publishers where appropriate. 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. They use mathematics, statistics, and financial theory to assess the risk of potential events, and they help businesses and clients develop policies that minimize the cost of that risk. 1 : of or relating to actuaries. We are the leading professionals in finding ways to manage risk. Duties Actuaries typically do the following: 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. Actuarial Work . The Dictionary.com Word Of The Year For 2020 Is …. Actuary definition, a person who computes premium rates, dividends, risks, etc., according to probabilities based on statistical records. ‘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.’ Still, other actuaries, either self-employed or working as a part of an actuarial firm, act as consultants for many different types of businesses. a person who computes premium rates, dividends, risks, etc., according to probabilities based on statistical records. Published by Houghton Mifflin Harcourt Publishing Company. A pension actuary has the task of calculating and budgeting for funding and spending pensions for retired workers. What does an actuary do? Actuaries are highly sought-after professionals who develop and communicate solutions for complex financial issues. The companies and funds use the results to … Most actuaries work at insurance companies, where their risk-management capabilities are particularly applicable. Actuaries, on the other hand, do not particularly care about past events unless such events have direct ramifications on the future. Actuaries often work for companies in an office setting; others work as free-floating actuary consultants to various businesses, although usually within one particular industry, like insurance. a person qualified to calculate commercial risks and probabilities involving uncertain future events, esp in such contexts as life assurance. Actuary is a person employed by an insurance company or other organisation to calculate the risk involved in an insurance, and therefore the premiums payable by persons taking out insurance. In many ways, the fluctuations of a financial market are less predictable than an individual's lifespan. What is an Actuary? The Most Surprisingly Serendipitous Words Of The Day. Actuaries are problem solvers and strategic thinkers, who use their mathematical skills to help measure the probability and risk of future events. Education General “Capital” vs. “Capitol”: Do You Know Where You’re Going? 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. You can learn more about the standards we follow in producing accurate, unbiased content in our. Actuaries assess particular situations financial risks, primarily using probability, economic theory, and computer science. The broadest definition of an actuary is someone who analyzes the financial consequences of risk. By the end of the century, early actuarial scientists had released the first mortality tables, which divided the population into groups based on lifestyle choices and personal circumstances. They use these skills to predict the financial impact of these events on a business and their clients. An insurance actuary is a professional who analyzes financial risk using mathematics, statistics, and financial theories. The actuarial profession, and actuaries in general, are suffering today from a perception problem. Actuarial science is currently one of the fastest-growing and better-paying industries in the United States.. Learn more. Actuaries have a deep understanding of mathematics, statistics and business management. ; Certification: To work as an actuary you must earn an actuarial designation from the Society of Actuaries (SOA) or the Casualty Actuarial … What Is Actuarial Science? The future is volatile and full of risk yet very few could predict the 2008 market crash or the 2014 oil price crash. A mathematician who uses statistics to calculate insurance premiums. Successful actuaries in the financial world must acquire an in-depth knowledge of potential investments and industries. U.S. Bureau of Labor Statistics. Using relevant statistical data, actuaries also compute dividends and decide premium rates. Actuaries combine their ability to measure probability with predictive tools specific to a market statistically. Dictionary.com Unabridged Actuaries are experts in: Evaluating the likelihood of future events—using numbers, not crystal balls. A statistician who computes insurance risks and premiums. An actuary is a mathematician who uses statistics to calculate premiums, dividends, or pension, insurance and annuity rates for an insurance company. 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. Actuaries work is essential to the insurance industry. An actuary is a mathematician who uses statistics to calculate premiums, dividends, or pension, insurance and annuity rates for an insurance company. Investment banks and insurance companies employ several full-time actuaries. The broadest definition of an actuary is someone who analyzes the financial consequences of risk. Actuaries possess a unique mix of mathematical, analytical, communication and management skills. See more. Once this was said so that he overheard it: it was said by an actuary, under a sunset of mauve and grey. Actuaries use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. : a person whose job is to tell insurance companies how much they should charge people for insurance based on risks. Actuaries’ work is essential to the insurance industry. An insurance actuary is a professional who analyzes financial risk using mathematics, statistics, and financial theories. The convergence of these fields for the actuary profession is called actuarial science. Definition of actuarial. What Is The Difference Between “It’s” And “Its”? An actuary is one of the top jobs for graduates who major in … The profession also includes statisticians who provide expert data analysis on risk assessment and risk management for the financial services sector. What does actuary mean? 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. These include white papers, government data, original reporting, and interviews with industry experts. Keep scrolling for … According to the U.S. Bureau of Labor Statistics, actuary jobs are growing in popularity, and a median salary on the high end is over $100,000. Work undertaken by a Member in their capacity as a person with actuarial skills on which the intended recipient of that work is entitled to rely. An actuary is a business professional who analyzes the financial consequences of risk. Minimum nonforfeiture values of ordinary life insurance policies, among other things you can More! Designing creative ways to reduce the likelihood of future events, especially those of concern to insurance and fields... The new Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Mifflin! Dictionary.Com Word of the Year for 2020 is … requires writers to use primary sources to support their.... 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