Statistics applied to risk in insurance and other financial products

Actuarial science

Actuarial science

Actuarial science is the discipline that applies <a href="/en/Mathematics" title="Mathematics" class="wl">mathematical</a> and <a href="/en/Statistics" title="Statistics" class="wl">statistical</a> methods to <a href="/en/Risk_assessment" title="Risk assessment" class="wl">assess risk</a> in <a href="/en/Insurance" title="Insurance" class="wl">insurance</a>, <a href="/en/Pension" title="Pension" class="wl">pension</a>, <a href="/en/Finance" title="Finance" class="wl">finance</a>, <a href="/en/Investment" title="Investment" class="wl">investment</a> and other industries and professions. More generally, actuaries apply rigorous mathematics to model matters of uncertainty.

<div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none" about="#mwt1">Statistics applied to risk in insurance and other financial products</div>

<figure class="mw-default-size mw-halign-right wiki-thumb"><a href="/en/File:Excerpt_from_CDC_2003_Table_1.pdf" class="mw-file-description image media-thumb" data-hash="File:Excerpt_from_CDC_2003_Table_1.pdf"><img loading="lazy" src="//upload.wikimedia.org/wikipedia/commons/thumb/4/47/Excerpt_from_CDC_2003_Table_1.pdf/page1-220px-Excerpt_from_CDC_2003_Table_1.pdf.jpg" decoding="async" data-file-width="1275" data-file-height="1650" data-file-type="office" height="285" width="220" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/4/47/Excerpt_from_CDC_2003_Table_1.pdf/page1-330px-Excerpt_from_CDC_2003_Table_1.pdf.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/4/47/Excerpt_from_CDC_2003_Table_1.pdf/page1-440px-Excerpt_from_CDC_2003_Table_1.pdf.jpg 2x" alt="page1-220px-Excerpt_from_CDC_2003_Table_1.pdf.jpg"></a><figcaption>2003 US mortality (<a href="/en/Life_table" title="Life table" class="wl">life</a>) table, Table 1, Page 1</figcaption></figure>

<a href="/en/Actuary" title="Actuary" class="wl">Actuaries</a> are professionals trained in this discipline. In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations.

Actuarial science includes a number of interrelated subjects, including <a href="/en/Mathematics" title="Mathematics" class="wl">mathematics</a>, <a href="/en/Probability_theory" title="Probability theory" class="wl">probability theory</a>, <a href="/en/Statistics" title="Statistics" class="wl">statistics</a>, <a href="/en/Finance" title="Finance" class="wl">finance</a>, <a href="/en/Economics" title="Economics" class="wl">economics</a>, <a href="/en/Financial_accounting" title="Financial accounting" class="wl">financial accounting</a> and <a href="/en/Computer_science" title="Computer science" class="wl">computer science</a>. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes since the 1980s due to the proliferation of high speed computers and the union of <a href="/en/Stochastic" title="Stochastic" class="wl">stochastic</a> actuarial models with modern financial theory.<a href="#cite_note-FOOTNOTEFrees1990-1" style="counter-reset: mw-Ref 1;">[1]</a>

Many universities have undergraduate and graduate degree programs in actuarial science. In 2010,[<a href="/en/Wikipedia:Manual_of_Style/Dates_and_numbers#Chronological_items" title="Wikipedia:Manual of Style/Dates and numbers" class="wl">needs update</a>] a study published by job search website CareerCast ranked actuary as the #1 job in the United States.<a href="#cite_note-FOOTNOTENeedleman2010-2" style="counter-reset: mw-Ref 2;">[2]</a> The study used five key criteria to rank jobs: environment, income, employment outlook, physical demands, and stress. A similar study by U.S. News &amp; World Report in 2006[<a href="/en/Wikipedia:Manual_of_Style/Dates_and_numbers#Chronological_items" title="Wikipedia:Manual of Style/Dates and numbers" class="wl">needs update</a>] included actuaries among the 25 Best Professions that it expects will be in great demand in the future.<a href="#cite_note-FOOTNOTENemko2006-3" style="counter-reset: mw-Ref 3;">[3]</a>

Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, pension, finance, investment and other industries and professions. More generally, actuaries apply rigorous mathematics to model matters of uncertainty. Actuaries are professionals trained in this discipline. In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations. Actuarial science includes a number of interrelated subjects, including mathematics, probability theory, statistics, finance, economics, financial accounting and computer science. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes since the 1980s due to the proliferation of high speed computers and the union of stochastic actuarial models with modern financial theory. 