What is an Actuary?
Actuaries are professionals who have mastered the economic, financial, mathematical, and statistical techniques of Actuarial work, and they use these techniques to advise many enterprises, mainly related to financial services.
Do understand the meaning of Actuary from what different Actuarial societies say,
International Actuarial Association
Actuaries are highly qualified professionals who analyze the financial impact of risk for organizations like insurers; pensions fund managers, and more. Governed by rigorous standards of practice, they apply their mathematical expertise to forecast and minimize financial uncertainty.
Institute of Actuaries of India
“Actuary” means a person skilled in determining the present effects of future contingent events or in financial modeling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits recommending rates relating to the insurance business, annuities, insurance, and pension rates on the basis of empirically-based tables and includes a statistician engaged in such technology, taxation, employees’ benefits, and such other risk management and investments and who is a fellow member of the Institute.
Traditional responsibilities of Actuaries in life and general insurance business include designing and pricing of policies, monitoring the adequacy of the funds to provide the promised benefits, recommending fair rate of bonus where applicable, valuation of the insurance business, ensuring solvency margin and other insurance risks like legal liability, loss of profit, etc. They also define the risk factors, advise on the premia to be charged and re-insurance to be purchased, calculate reserve for outstanding claims, and carry out financial modeling. An Actuary works as a consultant either individually or in partnership with other Actuaries in multi-disciplines like insurance, information technology, taxation, employees benefit, risk management, investment, etc. Evidently, the scope of the functions and duties of an Actuary has increased considerably under the changed conditions.
The Society of Actuaries
Actuaries are highly sought-after professionals who develop and communicate solutions for complex financial issues.
Actuaries measure and manage risk. Actuaries have a deep understanding of mathematics, statistics, and business management. With this, they help businesses grow and provide value to their customers. Actuaries help leaders make strategic decisions and consumers prepare for their future.
Actuaries are in demand. They work for and with businesses with a financial focus. Businesses including insurance-life, health, property-casualty, even pet insurance. Also, banking, investments, government, energy, e-commerce, marketing, employee benefits, product development, enterprise risk management, predictive analytics, consulting, and more.
The Insitute and Faculty Of Actuaries
Actuaries are problem solvers and strategic thinkers, who use their mathematical skills to help measure the probability and risk of future events. They use these skills to predict the financial impact of these events on a business and its clients.
Business and government increasingly depend on the skills of actuaries and analysts to help them model and plan for the future. As the world changes at an increasingly rapid pace, risk management expertise can help businesses navigate this evolving landscape.
This is a compilation of views given by different Actuarial institutes on "What is an Actuary?".