Actuary Need for insurance

The basic requirements of communal interests gave rise to risk sharing since the dawn of civilization. For example, people who lived their entire lives in a camp had the risk of fire, which would leave their band or family without shelter. After basic exchange came into existence, more complex forms developed beyond a basic barter economy,

and new forms of risk manifested. Merchants embarking on trade journeys bore the risk of losing goods entrusted to them, their own possessions, or even their lives. Intermediaries developed to warehouse and trade goods, and they often suffered from financial risk. The primary providers in any extended families or household always ran the risk of premature death, disability or infirmity, leaving their dependents to starve. Credit procurement was difficult if the lender worried about repayment in the event of the borrower's death or infirmity. Alternatively, people sometimes lived too long, exhausting their savings, if any, or becoming a burden on others in the extended family or society (Faculty and Institute of Actuaries 2004).

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Actuary

An actuary is a business professional who deals with the financial impact of risk and uncertainty.Actuaries have a deep understanding of financial security systems, their reasons for being, their complexity, their mathematics, and the way they work . They evaluate the likelihood of events ...


and quantify the contingent outcomes in order to minimize losses, both emotional and financial, associated with uncertain undesirable events. Since many events, such as death, cannot be totally avoided, it is helpful to take measures to minimize their financial impact when they occur. These risks can impact both sides of the balance sheet, and require asset management, liability management, and valuation skills. Analytical skills, business knowledge and understanding of human behavior and the vagaries of information systems are required to design and manage programs that control risk .

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