Actuarial science

Actuarial science applies mathematics, statistics, and financial theory to measure and manage uncertain future events, especially in insurance, pensions, and finance.

Loss models: Statistical models describing the frequency and severity of financial losses. They estimate the number and size of claims an insurer may face.
Property and casualty insurance: Insurance covering losses to property and liability for injury or damage. Actuaries price coverage and estimate claim liabilities for these risks.
Probability theory: The mathematical framework for describing and analyzing uncertain outcomes. It provides the language for representing uncertain claims and future events.
Underwriting: The evaluation of applicants or transactions to decide whether to accept risk and on what terms. Underwriters make individual acceptance decisions; actuarial work estimates risk across portfolios.
Insurance pricing: The process of setting premiums to reflect expected claims, expenses, and risk. Actuarial estimates help determine what policyholders pay for coverage.
Survival analysis: Statistical methods for analyzing the time until an event, including death or failure. It supplies methods for modeling lifetimes and other event times.
Life insurance: Insurance that pays a benefit upon an insured person's death or survival to a specified date. Mortality and longevity estimates determine premiums and benefit costs.
Mathematical statistics: The study of statistical methods using probability and mathematical reasoning. It supports inference from historical claims and population data.
Quantitative finance: The use of mathematical models and computation to analyze financial markets and instruments. It often focuses on market pricing and trading rather than insurance liabilities and benefits.
Actuarial reserve: A liability estimate held to support future insurance or pension payments. Reserve assumptions shape reported liabilities and an institution's financial position.

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