So...What is an Actuary?

In the previous entry I mentioned that when family and friends come up to me and ask me what an actuary is, I often have trouble giving them a good answer. In order to prevent that from happening again, why not get the definition straight from the horse's mouth?

According to the SOA(Society of Actuaries),:

An actuary is a business professional who analyzes the financial consequences of risk. Actuaries use mathematics, statistics and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. They evaluate the likelihood of those events, design creative ways to reduce the likelihood and decrease the impact of adverse events that actually do occur.

Actuaries are an important part of the management team of the companies that employ them. Their work requires a combination of strong analytical skills, business knowledge and understanding of human behavior to design and manage programs that control risk.

SOA members work in life insurance, retirement systems, health benefit systems, financial and investment management and other emerging areas of practice. The majority of actuaries work within the insurance industry, although a growing number of actuaries work in other fields.

Hmmm... that actually is a very cool sounding definition. Unfortunately I can't copy/paste definitions when I'm talking to someone in real life. I highlighted that part of the description because I currently plan on working in the health or pension system. Therefore, a future in the SOA is certainly very possible.

According to the CAS(Casualty Actuary Society):

Actuaries evaluate the financial impact of current economic, legal, and social trends on future events. The accurate and responsible matching of risk to price is the foundation upon which the financial integrity of the actuary's company or client rests. For these reasons, actuaries are known for their scientific approach and demanding standards.

Because human events and their financial implications occur over long periods of time, an actuary is a researcher, a planner, and a decision maker. He or she is a specialist in the business world, and may be knowledgeable as well in a number of other disciplines, such as economics, law, health, and finance.

The Casualty Actuarial Society is a professional organization whose purpose is the advancement of the body of knowledge of actuarial science applied to property, casualty, and similar risk exposures. This is accomplished through communicating with the publics affected by insurance as well as presenting and discussing papers, attending seminars and workshops, conducting research, and maintaining a comprehensive library collection.

The CAS obviously offers a similar definition to the SOA. The bolded area highlights the type of fields the CAS covers. Currently I do not see myself having an interest in property or casualty fields, most namely casualty.
Below is a video that tries to explain what an actuary is

So, to sum it all up, an actuary is a professional who uses mathematic applications, statistics, and analytic skills in order to forecast future events for insurance, pension, and other business entities. Hope that little snippet of a definition is accurate.