What is the definition of Actuary?

An Actuary is someone who is an expert at mathematics and statistics. He computes the premium rates, reserve, risks and dividends that will be offered in a specific insurance policy. The insurance company hires an actuary to formulate their products.  An actuary can also help in the administration of pension funds.

The actuary uses complicated statistical models to predict the likelihood of a certain event (such as death or sickness). He bases his computations on experience tables (death rates, crime rates and other statistical tools) to try to assess the life expectancy of a certain group. An actuary will sometimes include in his computations considerations such as health habits (smokers vs. non-smokers) and gender (male vs. female) to give fair rates for insurance premiums.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability