The term “actuarial science” is related to:

• “Actuary” means a person skilled in determining the present effects of future contingent events or in finance modelling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits recommending rates relating to insurance business, annuities, insurance and pension rates on the basis of empirically based tables and includes a statistician engaged in such technology, taxation, employees’ benefits and such other risk management and investments, and who is a fellow member of the Institute of Actuaries of India.

• The traditional responsibilities of actuaries in life and general insurance business include designing and pricing of policies, monitoring the adequacy of the funds to provide the promised benefits, recommending fair rate of bonus, where applicable, valuation of the insurance business, ensuring solvency margin and other insurance risks, like legal liability, loss of profit, etc. They also define the risk factors, advise on the premia to be charged and re-insurance to be purchased, calculate reserve for outstanding claims and carry out financial modelling.

• An actuary works as a consultant, either individually or in partnership with other actuaries in multi-disciplines, like insurance, information technology, taxation, employees benefit, risk management, investment, etc. Evidently, the scope of the functions and duties of an actuary has increased considerably under the changed conditions.

• The Institute of Actuaries of India is a statutory body, established under the Actuaries Act, 2006, for regulation of profession of actuaries in India.