What is Actuarial Science?

While buying an insurance policy, you might have observed that your insurance advisor / consultant refers to some table of numbers, uses an excel sheet on his computer and arrives at a premium rate for the policy plan of your interest, no matter whether it is a life insurance policy, health insurance policy, property insurance policy or a casualty insurance policy. Have you ever thought as to who decides or prepares these tables / rates for insurance premiums?

 

We are aware of the derivative products like futures and options in the security market. But how does one arrive at a fair price of these products based on the price of underlying security? Most of us are aware of retirement benefits like Gratuity and Pension. When a Company offers such benefits as a part of service contracts, it must create a fund to meet its future liability to its employees. How does the company decide on what contributions should it make to these benefit funds?

 

The science that leads to answers to all these questions is Actuarial Science. The subject of Actuarial Science has derived its roots from Mathematics, Statistics, Economics and Finance.



History of Actuarial Science



Development of Actuarial Science Principles started along with the need of maintaining population statistic and the government’s initiative in using this for planning and estimating the requirements of food grains and other essentials. Collection of ‘The History of Actuarial Science’ done for the first time by Steven Heberman and Trever A Sibbett shows that there were some significant pamplets designed around actuarial science principles as early as in 220 A.D. However major development took place mid seventeenth century onwards. Comet famed Edmond Halley was the first to construct a Life Table in late seventeenth century. While stochastic modeling is latest tool developed for actuarial science applications, financial risk management is the latest application area.

We are proud to announce THREE more Actuaries (qualified in the second half of 2017) from amongst our alumni:

1. Jinal Pandit Sheth, Fellow of Institute of Actuaries of India 

2. Kshitij Shah, Fellow of Institute and Facuty of Actuaries, UK

3. Krithika Verma, Fellow of Institute of Actuaries of India 

You can read Reviews by our alumni and students at the link:
Read Reviews

Hearty Congratulations to

[1] Kshitij Shah for standing First in CA3 examination held by Institute of Actuaries of India in July, 2017

[2] Albina Chettiar for securing highest marks in the subject of ST2 in the examination of institute of Actuaries of India held in September, 2017.

Congratulations to all our students for putting up an excellent performance at IAI exam. held in September, 2017 and IFoA, UK held in October, 2017
Like us at facebook:
https://facebook.com/dsacted