The Actuary
CERTUM EX INCERTIS
What is an actuary?
The basic aim of an actuary's work is to determine, with the highest possible degree of probability, future trends in demographic and economic variables.
The actuary's skill is in outlining what will actually happen in the future in the short, medium and long term.
An actuary is specialised in statistics, mathematics, probability calculations and the financial theories applied in the study of uncertain future events, in particular those relevant to insurance, social security schemes and finance.
What does an actuary do?
An actuary designs and appraises financial and insurance products, carries out statistical analysis and deals with electronic form data from the financial markets, prepares and certifies financial statements for insurance companies, pension funds and social security funds, evaluates the financial performance and standing of public and private companies and acts as expert witness in court.
Further, with the advent of the IAS international accounting standards and the introduction of the Solvency II provisions regarding the solvency of insurance companies, new challenges have emerged requiring an actuary's expert knowledge as well as his or her experience and professionalism.
How do you become an actuary?
An actuary's professional training starts with a degree in Statistical and Actuarial Sciences: a prerequisite to sitting the state examination in order to qualify and then apply to be admitted to the Actuaries' Roll.
The Society of Actuaries was established by law no. 194 of 9 February 1942 and is an auxiliary body of the Ministry of Justice. The actuarial work carried out by the Appointed Actuary for life insurance companies and insurance companies operating in the vehicle liability insurance line, plus the certification of reserves for all insurance companies is, by law, reserved to actuaries.
There are two separate professional figures, being the 'actuary' (in Section A of the Actuaries' Roll) and the 'junior actuary' (Section B), with the latter being restricted to carrying out only basic work types.
Universities in Italy with faculties offering courses in Statistical and Actuarial Sciences are Rome's 'La Sapienza', Trieste, Florence, the ' Cattolica ' University of Milan, Benevento, Cosenza and Turin.
Where does an actuary work?
There are many opportunities open to an actuary to work freelance or as an employee with:
- insurance companies (life and accident) and re-insurance companies
- social security institutions, pension funds and social security funds
- public bodies
- regulatory bodies
- banks, finance and leasing companies
- stockbroking firms
- merchant banks
- trade associations
- consultancy firms
- actuarial firms
