The Role and Function of the Actuary

An actuary applies analytical, statistical and mathematical skills to financial and business problems, especially those which involve uncertain future events, such as in life insurance, general insurance, risk management, health care financing, investment, corporate finance, banking, pensions and social security. This helps individuals and businesses to safeguard their future, confidently and at a fair price, in an ever-changing world.

Actuaries are -

• acknowledged experts in the analysis and modelling of situations involving financial risk and contingent events;

• concerned with both the asset and liability side of the balance sheet;

• able to provide realistic solutions to complex problems with a long term forward look; and

• practical, innovative and numerate.

Actuarial skills include –

• financial and mathematical modeling, including mortality and morbidity rates;

• analysing and managing uncertainty;

• evaluating financial consequences;

• analysis of risk and risk management;

• scientific pricing and reserving techniques;

• asset/liability management, and

• overall financial management.