actuary
AK-choo-er-ee
/ˈæktʃuəri/
A person who compiles and analyzes statistics and uses them to calculate insurance risks and premiums.
Actuaries are the 'math wizards' of the retirement world, predicting how long people will live and how much money a fund needs.
The story behind the word. In Roman times, an 'actuarius' was a clerk who recorded the 'acta' (acts) of the Senate. Over time, the role shifted from recording history to recording the statistics of life and death.
Word relationships
- statistician: A broader term for anyone working with data; actuaries are specialized in risk.
Commonly confused with
- underwriter: An underwriter decides whether to accept a specific risk; an actuary calculates the math for the whole system.
Word family
- actuarial (adjective): Relating to actuaries or their work.
Collocations
- pension actuary
- insurance actuary
- actuarial tables
Example sentences
- "An actuary uses complex mathematical models to ensure that pension funds remain solvent for decades to come." Career Description
- "An actuary is someone who wanted to be an accountant but found the pace too fast." Humor
Memory hook
An 'actuary' calculates the 'actual' risk of you living to 100. The mathematician of risk.
When not to use
Don't call a regular accountant an actuary; actuaries specifically deal with risk and probability over long timeframes.
Fun facts
- Actuarial science was pioneered in the 17th century to help calculate the cost of life insurance during plague outbreaks.
Explore more words
economist, accountant, Statistics, insurance, projection, stochastic
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