actuary investment & finance definition

A specialist in mathematics who is employed by an insurance company or other financial institution. For example, an insurance actuary reviews the data of claims filed by policyholders to determine how risk should be priced. The actuary recommends the amount of premiums that should be charged, the amount of reserves that should be kept, and the amount of dividends paid. Actuaries in other companies attempt to project results and potential outcomes by analyzing numerical data.