Actuaries, professional experts in the assessment, modeling and management of risks in their economic, financial, insurance and social dimensions, have an internationally recognized role in insurance, retirement and finance.
According to the International Standard Classification of Occupations, an actuary “… applies his or her knowledge of mathematics, statistics and financial affairs to the design and operation of pension schemes and life, health, social and casualty insurance systems”.
This definition, which dates back to 1968, does not mention the role of actuaries in finance and many other areas in which actuaries are making important contributions, beyond the traditional areas of insurance, pension, life, health and disability benefits.
It demonstrates the difficulty of a static definition for an evolving profession in an increasingly complex world. One of the best working definitions of an actuary is “the professional who makes financial sense of the future” or alternatively, “the professional who manages the financial consequences of the uncertain”.
The actuary uses mathematical and statistical techniques to solve problems relating to the evaluation and management of risk, especially in relation to financial instruments and the management of financial institutions such as insurance companies, pension and benefit plans, provident funds or social insurance programs.
Actuarial roles may include the design and pricing of products; assessing the adequacy or the fairness of benefits; establishing provisions; assessing and managing risks; making recommendations on financing strategy, solvency and investments; providing dynamic financial analyses and financial reporting.
The actuarial profession serves the public interest by providing professional advice and independent analyses of public policy options while a number of actuaries are serving in regulatory and supervisory functions or as appointed actuaries for an insurance company, a social security system or a pension plan.