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.

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We are delighted to announce one more alumnus to qualify as Fellow of Institute of Actuaries of India in March 2017: Divya Dadlani. Congratulations to Divya and Team DSACtEd!
Hearty Congratulations to our T. Y. B. Sc. student: DIVYAM SANKHARVA FOR Heading the PASS LIST of CT8 examination held by Institute of Actuaries of India in September, 2016
Congratulations to all our students for putting up a good show at IAI exam. held in March, 2017
We are proud to announce successes of our alumni at the April, 2016 examination held by Institute of Actuaries of India:-Shilpi Jain has qualified as Fellow Actuary Krupa Shah has topped Pass list of ST4 Rushabh Shah has topped ST6 Pass List. Hearty Congratulations to all of them and many others who passed in various subjects!!!
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