actuary

Individual who calculates statistical risk, often using complex mathematical modelling. Actuaries are commonly employed in the insurance and pension industries where risk assumes great importance. Actuaries produce actuarial tables for underwriters and insurance brokers, who use them as a reference guide, for example for the calculation of life insurance premiums.

In England during the 18th century, Abraham de Moivre and other eminent mathematicians were commonly consulted on the valuation of annuities and other interests dependent upon human life. Modern life assurance may be said to date from the establishment 1762 of the Equitable Society with its scale of premiums properly graduated according to age. In the society's deed of copartnership its chief executive officer was styled Actuary, and the widespread use of the word ‘actuary’ to describe all those who were skilled in problems involving life and similar contingencies was almost certainly due to the character and abilities of William Morgan, the actuary of the Equitable 1775-1830, who may justly be regarded as the founder of the actuarial profession.

Professional bodies are the Institute of Actuaries (England, 1848), Faculty of Actuaries (Scotland, 1856; Australia, 1977, incorporating earlier bodies), and Society of Actuaries (USA, 1949, by a merger of two earlier bodies).

The professional body in the US is the Society of Actuaries, formed 1949 by a merger of two earlier bodies.