What Is Actuarial Science

An actuary is a business professional who manages financial risks related to insurance product design, pension and other financial corporate planning. By applying his knowledge in probability, statistics, risk theory and financial principles, an actuary is abled to quantify future risk with respect to insurance, anuiti and pension programs.

To achieve all this, an actuary must initially collect and analyse data to formulate mathematical models. Models on the probability of sickness, death, accident and so on together with unemployment , marriage and other demographic tables are constructed. After all probabilities and company's expenses are calculated, an actuary is abled to determine the value of periodical or single premium needed to pay for expected insurance benefits to be paid in the future.

An actuary is also known as a financial architect and a social mathematician due to his unique combination of quantitative analysis and business expertise to solve the ever increasing financial and social problems. The calculations and planning of an actuary is the backbone of the insurance industry and financial securities. Eventhough an actuarial career involved a lot mathematics, an actuary must always observe current issues and trends in business, social science, legal environment and the economy.