What Is an Actuary? Definitions from Around the World (IAA, SOA, CAS, IFoA, CONAC) Compared

There is no single "official" definition of an actuary: each professional association words it in its own way. Yet they all share one central idea: the actuary is the professional who measures and manages the financial risk of uncertain future events. Let us look at how the main bodies put it.

A synthesis definition

An actuary is a professional who applies mathematics, probability, statistics, economics and financial theory to measure, value and manage future risks, mainly in insurance, pensions and investments, and to turn them into sound financial decisions.

Definitions from around the world

IAA · International Actuarial Association (global)

"An actuary is a professional trained to evaluate the financial implications of contingent events, applying mathematical, statistical, economic and financial analysis to a wide range of practical problems."

Emphasis: contingent events and financial implications. The federative, global view.

SOA / CAS · Be An Actuary (United States)

"Actuaries are experts in evaluating the likelihood of future events and in designing creative ways to reduce the likelihood, and lessen the impact, of undesirable events."

Emphasis: the likelihood of future events and designing solutions. A practical, business oriented view.

IFoA · Institute and Faculty of Actuaries (United Kingdom)

"Actuaries are problem solvers and strategic thinkers who use their mathematical knowledge to measure the probability and risk of future events."

Emphasis: strategic thinking and problem solving, beyond calculation.

CIA · Canadian Institute of Actuaries (Canada)

"Actuaries apply their knowledge of mathematics, finance, statistics and risk management to real world problems, providing financial security and peace of mind."

Emphasis: financial security and public trust.

CONAC · Colegio Nacional de Actuarios (Mexico)

"The actuary is the professional who applies mathematical, statistical and financial models to evaluate and manage risks, mainly in insurance, pensions, finance and investments."

Emphasis: models applied to Mexico's insurance, pension and financial sectors.

A professional comparison

Although the substance is the same, each definition puts the accent on a different aspect of the profession:

Body	Country / scope	Keyword	Emphasis
IAA	Global	Contingent events	Financial implications; global and federative view
SOA / CAS	USA	Likelihood	Evaluating and reducing risk; practical, business focus
IFoA	United Kingdom	Strategy	Problem solver and strategic thinker
CIA	Canada	Financial security	Public trust and peace of mind
CONAC	Mexico	Models	Applied to Mexican insurance, pensions and finance

Three ideas recur in all of them: (1) risk and uncertain future events, (2) quantitative tools (mathematics, probability, statistics, finance) and (3) practical application to real financial decisions. That is the essence of the actuary in any country.

The origin of the word

"Actuary" comes from the Latin actuarius, the official of the Roman Empire responsible for keeping minutes and official records. With the birth of life insurance in the 18th century, the term came to mean the expert who calculated premiums and reserves: the first to formally hold the title was William Morgan, actuary of the Equitable Life in London in 1762. See the history of actuarial science.

Note: the quotations are renderings, adapted for a general audience, of the definitions each body publishes on its official website (the CONAC definition is translated from Spanish); the meaning is preserved, but the exact wording may vary. See the original definitions on the IAA, SOA/CAS, IFoA, CIA and CONAC websites.