Actuary Definition and Meaning
In order to understand the meaning of the term actuary, one must begin by establishing its etymological origin. In this case, we can say that it is a word that derives from Latin, specifically, from “actuarium” that can be translated as “adviser” or “advisor”. It is the result of the sum of two clearly differentiated parts: “actum” and the suffix “-ario”, which can be used to indicate “relative to”.
The concept is used in the field of law to name the subject who, when proceedings are processed, takes action with public faith.
To understand the DEFINITION OF actuary, therefore, one must know the meaning of various notions. A procedural order is a resolution of a judicial nature issued by a court with reference to a request from one of the parties. These cars are responsible for resolving incidents or issues prior or secondary to the sentence.
The public faith, on the other hand, is the authority granted to certain individuals to declare that certain documents or procedures are authentic. In this way, the public faith given by an official confirms that what is expressed in a document must be taken as true as long as there is no evidence of its falsity.
The act, moreover, is the branch of knowledge that involves the application of mathematical models and statistics to assess risks. Actuaries, within this framework, work in the field of finance and insurance, analyzing how uncertainty impacts entities financially.
The actuary, therefore, specializes in the valuation of random events to promote correct decisions. It is important to highlight that the actuary cannot cancel the uncertainty: his role is the development and application of tools that allow predicting the consequences of events in the future.
In the same way, we cannot overlook the fact that the term actuary is also used to refer to another type of individual. Specifically, it is used to mention a professional with a degree in Economic Sciences who ends up specializing in insurance, capital markets, merchandise, social security or even risky operations.
Specifically, this knowledge is what leads him to be an expert prepared and trained to not only be at the forefront of managing different types of companies but also to shape all types of insurance. In his first role he will proceed both to analyze the possible risks that the company may have and to plan its strategies or work on modifications to be able to change its financial situation, for example.
Based on all the above, we find the fact that there are many companies and entities that may require the presence of an actuary. This would be the case, for example, of companies specialized in portfolio management, insurance companies, government entities of all kinds…