Perhaps a sensible way to begin would be to give you some basic information about actuaries.

What is an actuary?

An actuary:

  • Uses mathematical and statistical techniques to solve business related problems
  • Estimates the current financial impact of future contingent events
  • Focuses on insurance issues
Anne Graphic: The Basics

Kinds of actuaries:

  • Life Actuary: Specializes in the statistical nature of life products such as term and whole life policies and pensions
  • Casualty Actuary: Specializes in property and liability lines of insurance, such as automobile insurance

Chris works in the casualty field so from here on, I'll focus there.

Basic Tasks of a Casualty Actuary:

  • RatemakingEstablishing the correct rate to charge for an insurance product
  • ReservingDetermining the value of a company's loss and expense liability

Copyright © 1996, 1997 Maher Associates, Inc.
Last modified: July 4, 1997