The Actuarial Profession: Basic Sciences and Principles

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The Actuarial Profession: Historical Development, Basic Sciences, and Principles

Review of the historical development of the actuarial profession from its inception to the present.

Explain the principles and scientific concepts and ideas that underpin the actuarial studies.

Differences between the principles and the rules of practice of the actuarial profession.

Basic concepts and ideas underlying the actuarial studies – Statistics, Probability, Demography, Mathematics, Economics, etc.

Explain the standards and rules of practice of the actuarial profession depending on its development.

Reasons for conducting actuarial valuation:

•In response to legislative requirements (as in the case of social security system).

•It is useful (even necessary) to conduct actuarial valuation when there is a need to make any adjustments to the inputs or outputs of the pension system, such as increased pension.

•If you want to merge two or more pension systems in order to solve some of the financing problems or to effect financial reforms, legislative or administrative retirement funds.

Importance of conducting actuarial valuation

• Identify Financial Position.

• Diagnose & Resolve Financing problems faced by the insurance system.

•To take steps to promote and strengthen the financial position of the insurance system procedures in a timely manner.

•Ensuring the continuity of the insurance system and its sustainability for the next generations specially when adopting the policy of self-financing (as with social security and other pension funds systems).