Actuary
AdvancedAn actuary is a professional who uses mathematics, statistics and financial theory to measure and manage risk and uncertainty, especially in insurance, pensions and investments.
Actuaries estimate the probability and financial impact of future events, such as deaths, illnesses, accidents, natural disasters and investment returns. Their work helps organisations price products, set aside enough money to meet future obligations and manage risk.
In insurance, actuaries calculate premiums, estimate claim reserves and assess capital needs. In pensions, they estimate how much employers need to contribute to meet future pension promises, using assumptions about life expectancy, salaries, inflation and investment returns. They also work in banking, healthcare, government and consulting.
For example, a life insurance actuary uses mortality tables showing the probability of death at each age to set premiums for term life policies, ensuring the insurer can pay future claims and cover its costs.
Becoming a qualified actuary usually requires passing a demanding series of professional exams over several years, set by professional bodies such as the Society of Actuaries in the United States and the Institute and Faculty of Actuaries in the United Kingdom. Actuaries often have legal responsibilities, such as signing off on reserves.
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