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Actuarial Meaning: Definition, Examples, and Translations

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actuarial

[รฆkหˆtสƒสŠษ™riษ™l ]

Definition

Context #1 | Adjective

related field

The term 'actuarial' pertains to the profession of actuaries, who specialize in evaluating financial risks using mathematics, statistics, and financial theory. Actuarial work is primarily related to the insurance and finance industries, where actuaries analyze data to help assess the probability of events occurring. This enables companies to make informed decisions regarding policy pricing and risk management. The work of actuaries is essential in ensuring that insurers remain solvent and able to pay out claims in the event of unforeseen incidents.

Examples of usage

  • Actuarial science is crucial in determining insurance premiums.
  • She has a degree in actuarial mathematics.
  • Actuarial reports provide insight into risk management.
  • He works as an actuarial analyst for an insurance company.

Translations

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Interesting Facts

History

  • The profession began to formalize in the 18th century with the rise of life insurance companies.
  • The first actuarial society, the Institute of Actuaries, was established in London in 1848.

Mathematics

  • Actuaries use complex mathematics, including probability and statistics, to assess future risks and help businesses make informed decisions.
  • They apply models that predict event likelihoods based on historical data.

Insurance

  • In insurance, professionals determine premiumsโ€”you pay the company to cover potential future losses.
  • They analyze data to estimate life expectancy and the likelihood of claims.

Pop Culture

  • Actuaries are often portrayed in media as analytical and detail-oriented, sometimes lacking social skills, but they play a crucial role in finance.
  • Films and books occasionally feature characters that are actuaries, emphasizing their role in solving problems with numbers and risks.

Origin of 'actuarial'

Main points about word origin

  • The word comes from the Latin 'actuarius,' which means 'ledger clerk' or 'one who keeps accounts.'
  • It evolved in English during the mid-19th century, closely associated with the insurance business.

The word 'actuarial' has its roots in the Latin word 'actuarius', which means 'agent' or 'bookkeeper'. It is derived from 'actus', meaning 'action' or 'deed'. The term began to be used in English during the late 19th century, particularly in connection with the field of insurance, where representation of risk through numerical methods became crucial. Actuaries emerged as professionals who assess and manage financial risk using statistical methods, providing essential services to the insurance sector. Over time, 'actuarial' has come to represent the body of knowledge and practices associated with this profession, emphasizing the importance of quantitative analysis in evaluating uncertain future events.

Word Frequency Rank

At position #13,336, this word is part of sophisticated English vocabulary. It's useful for academic or professional contexts where precise language is needed.