APPOINTED ACTUARY Meaning and
Definition
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An appointed actuary is a professional responsible for assessing and managing the financial risks and obligations of an insurance company. This individual is appointed by the board of directors or regulatory authorities to ensure that the insurer's operations comply with legal and regulatory requirements.
The primary role of an appointed actuary is to determine the appropriate amount of reserves that the company must hold to meet its future insurance policy obligations. This involves analyzing actuarial data, such as mortality rates, claims experience, investment returns, and other risk factors, to make accurate predictions about the company's future liabilities.
The appointed actuary is also responsible for performing financial modeling and stress testing to evaluate the company's solvency, profitability, and overall financial stability. By conducting these assessments, the actuary helps the insurance company to develop effective risk management strategies and make informed decisions regarding pricing, product development, and investment strategies.
Furthermore, the appointed actuary plays a crucial role in guiding the insurer's compliance with regulatory requirements. They provide expert advice and recommendations on matters related to insurance regulations, financial reporting, and actuarial standards. This ensures that the company's operations adhere to legal guidelines and industry best practices.
Overall, the appointed actuary is an essential functionary within an insurance company, as they help ensure the financial security and long-term viability of the organization by accurately assessing and managing its risks and obligations.
Etymology of APPOINTED ACTUARY
The term "appointed actuary" is made up of two separate words: "appointed" and "actuary".
The word "appointed" comes from the Old French word "appointer", which means "to decide, determine, or fix". It evolved from the Latin word "appointare", meaning "to prepare, arrange, or designate". In the context of an appointed actuary, the word suggests that someone has been selected or designated for a specific role or position.
The word "actuary" is derived from the Latin word "actuarius", which referred to a registrar or keeper of records. It evolved to represent a person who evaluates and assesses risks and probabilities, particularly in the field of insurance or pensions. The term "actuary" gained popularity in the 19th century, as the profession became more specialized and formalized.
