Actuary

Actuaries are scientifically trained experts who in insurance, dealing in building society or nature of pensions on the basis of mathematical and statistical methods to the modeling, assessment and management of risks. In particular, they are concerned with the probability theory, mathematical statistics and financial mathematics.

History

Originally, the actuary (Latin Actuarius, " high-speed recorder in negotiations ", from agere, "act" ), a clerk in the Roman Senate. He was the secretary, but not in a secret decree of the senate ( " actum tacitum "), which was to be finished by the senators themselves. Since the Senate at the same time was also the supreme Roman dish, this term rendered on court clerk in general, in Germany until the 19th century, when ecclesiastical courts until today. So Johann Wierich Schmedding is listed in the official " inquiry about the court situation " in Bochum from 1714 as actuary at the Municipal Court.

In England, the mathematician Edward Rowe Mores founded (1731-1778) in September 1762 the reciprocity club " The Society of Equitable Assurance on Lives and Survivorships " whose statutes with the " Actuary " introduced as a CEO, a new word in the English language. " Actuary " was so that he applies to his official designation as the first actuary in the modern sense.

Johann Wolfgang Goethe met during his studies in April 1770 in Strasbourg on the actuary Johann Daniel Salzmann. Wilhelm Busch was dedicated in 1870 the actuary a picture story:

"The lunch, as it was twelve / set down at the table of the Lord actuary. "

In England, the title of the actuary was officially cultivated with the founding of the Institute of Actuaries in July 1848. Was held in Brussels in September 1895, the first International Congress of Actuaries held (International Congress of Actuaries, ICA), while organized in Berlin in September 1906 Actuarial Congress was officially titled " World Conference for insurance science." Previously had constituted the Department of Actuarial Science at the German Association for Insurance Science Association in Berlin on April 4, 1903. A first definition of the Actuarial profession in Germany there were in September 1899, when an association of Actuaries, "so the life insurance technician " was founded.

In the 15th edition of the Brockhaus 1928, the actuary was defined as the formerly used in the judiciary official title for Trainees, 1966 its object is first added as insurance and business mathematics in the international insurance industry. In the 20th Brockhaus 1996 edition of the actuary is then not only the court clerk and court reporters, but also the scientific insurance and business mathematics. Even a legal basis created - through the implementation of EC insurance directives into German law in July 1994, the actuary - along the lines of the British " appointed actuary ".

Legal Issues

According to § 11a VAG each life insurance company has a " responsible actuary " to order, which must be fit and proper. Professional suitability requires sufficient knowledge in actuarial science and professional experience. Sufficient experience is to take regularly if at least three years of activity is demonstrated as an actuary. The significance of insurance supervision is the position of the Actuary, shows the further content of the provision. The actuary must be appointed to the BaFin before ordering and is appointed and dismissed ( § 11a para 2 and 2a VAG ) with the consent of the Supervisory Board. He shall ensure in accordance with § 11a para 3 VAG, that in the calculation of insurance premiums and benefit reserves the principles of § 11 VAG and the ordinances adopted pursuant to § 65 para 1 VAG and § 341f HGB ( insurance provision ) are complied with. The report shall include in particular then check whether the position to fulfill the obligations arising from the insurance contracts is guaranteed at all times and the company has sufficient resources, the financial position of the company.

The work of the actuary is not limited to life insurance companies. According to § 11d VAG in connection with § 11 Section 1 Sentence 1 VAG an actuary is also for accident insurance with return of premiums, in accordance with § 12 Section 2 Sentence 1 VAG in the substitutive health insurance and casualty insurance with pension benefits for accident to appoint or liability insurance.

Tasks

A actuary created using simulation techniques of mathematical models, which uses a large number of analyzed data from the past targets for the future can be calculated. These are intended to provide information as to which is to be expected underwriting result for a current or future period, and could with what likelihood deviations from this expected result. As part of the tariff calculation create actuaries using mathematical methods risk models with which the risks to be covered are represented as realistically as possible in a portfolio. From such a model, they then develop a tariff which is the basis for the premium calculation for the insurance of such risks. His duties are essential to the core business of insurance, because the insurance technique is based on actuarial and their many complex models and formulas. The duties of the actuary are not limited to insurance, but the capital investment, pension and reinsurance are also in the building society beings needed. Actuaries usually work with insurance companies, in addition to authorities, consultancies, expert in integrated agencies, accounting firms and self-employed, such as a consultant or trustee. Check with insurers to hedge through reinsurance. The results of the checks are recorded in the financial statements and the part of an annual report explaining.

Profession

The actuary has not a closed profession, the job title is not protected by law. Requirement for training as an actuary is a closed mathematical education at a university. This degree may be substituted upon request by another equivalent degree ( business mathematics, statistics, physics ). Otherwise, a mathematical entrance exam must be taken in time before all other tests (circumference 90 minutes). Another requirement is to demonstrate a basic knowledge of probability theory and statistics. According to the principles of the former BAV no objection to the order are collected as " appointed actuary " if he has completed a mathematical education at a university, technical college or technical school with success and he has sufficient actuarial knowledge as well as a complete 3 -year-old practice can prove as an actuary. He is an expert in the fields of insurance and utilities, financial, insurance and business mathematics and in the annuity and pension advice.

Actuarial

Earlier in insurance mathematics departments were common. The actuarial emerged from these mathematical departments of an insurance company. There rates are calculated, calculated reserves and created mathematical models to corporate management. Department is headed by the " responsible actuary ".

Professional organizations

Actuaries are organized in national and international professional associations, for example in the German Actuarial Association (DAV) eV, the Swiss Association of Actuaries ( SAV) or the Actuarial Association of Austria ( AVO ). The International Actuarial organization is the International Actuarial Association ( IAA). As a representation of almost all actuarial associations worldwide coordinating the requirements for education, training, ethical requirements and mutual recognition. In addition, it proposes standards for actuarial activities that can be applied or adopted by actuaries or national actuarial associations.

Founded in November 2003, German Actuarial Association (DAV) eV is a professional organization with strict subject-specific admission criteria, but membership is not mandatory. It has taken on the task of ensuring the necessary qualifications of actuaries and offers a comprehensive training and education program. With inclusion in the DAV undertake the actuaries to follow the Constitution Rules of the Association. The actuary has noted the so-called " Actuarial principles ". The successful completion will be titled actuary (DAV ), corresponding, confirmed in Switzerland and Austria.