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A page of actuary math

Actuaries are people who are experts in mathematics, probability, economics, and finance who figure out how much money businesses should charge for making promises to pay for something that may or may not happen.[1]

History[change | change source]

Hundreds of years ago, when people got sick or died, it cost a lot of money to take care of them or bury them. People had the idea of joining their money together to help each other out. This was called pooling. Eventually, people started to make a business out of collecting enough money to help people who had big problems.[2]

Figuring out how much money needed to be collected from people to be used if problems happened was not easy. Over hundreds of years, the math needed for this was developed by many people from all over the world.[2]

Today, actuaries use computers to figure out problems that were too difficult before.[3]

Work[change | change source]

Actuaries now work in many places. Most work for insurance companies, but others work in all kinds of finance companies.[4] Actuaries still figure out how much money needs to be paid for life insurance, as well as other kinds of money promises, like pensions, car insurance,[5] house insurance, and similar.[4]

Actuaries also work with companies to figure out if making certain business deals are a good idea, since actuaries work with figuring out what the probabilities are of different business situations happening.[4]

Tests[change | change source]

People who want to be actuaries need to take many tests. The tests are not the same in different parts of the world.

Notes[change | change source]

  1. Trowbridge, Charles L. (1989). "Fundamental Concepts of Actuarial Science" (PDF). Revised Edition. Actuarial Education and Research Fund. Archived from the original (PDF) on 2006-06-29. Retrieved 2006-06-28. {{cite journal}}: Cite journal requires |journal= (help)
  2. 2.0 2.1 "History of the actuarial profession". Faculty and Institute of Actuaries. January 13, 2004. Archived from the original on 2006-05-02. Retrieved 2006-06-21.
  3. MacGinnitie, James (November 1980). "The Actuary and his Profession: Growth, Development, Promise" (PDF). Proceedings of the Casualty Actuarial Society. LXVII (127): 49–56. Archived from the original (PDF) on 2006-07-21. Retrieved 2006-06-28.
  4. 4.0 4.1 4.2 "Actuaries". Occupational Outlook Handbook 2008–09 Edition. U.S. Department of Labor, Bureau of Labor Statistics. December 18, 2007. Archived from the original on 2008-09-17. Retrieved 2008-01-04.
  5. "Car Insurance". MoneyMagpie. Archived from the original on 2021-04-13. Retrieved 2021-04-13.