Actuarial Principles and Practices

Actuarial Principles and Practices involve using mathematics, statistics, and financial theory to evaluate and manage risks, primarily in insurance and pensions. Actuaries analyze data to estimate the likelihood of future events, such as accidents or illnesses, and determine appropriate premiums and reserves to ensure financial stability. They apply ethical standards and professional judgment to develop sustainable policies that balance risk, cost, and benefit for organizations and society. Essentially, they help organizations make informed decisions about risk management, ensuring that they can meet future liabilities while remaining financially sound.