ACTUARIAL SCIENCE

           

Actuarial science is a way of finding results of risk in the insurance and finance. When it calculate the risk, it gets help with mathematics and statistics. In order to assess, solve and analyze the risk of future event, actuarial science uses the mathematics of probability and statistics. Traditional actuarial science largely revolves around the analysis of mortality and the production of life tables, and the application of compound interest.

Actuarial science is related to a few correlational subjects. These are about statistics, probability, mathematics, finance, economics, financial economics, and computer programming. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes during the last 30 years due to the proliferation of high speed computers and the union of stochastic actuarial models with modern financial theory

Actuarial science has two main applications. These are related to life insurance and pension. Actuarial science is also applied in the study of financial organizations to analyze their liabilities and improve financial decision-making. Actuaries employ this specialty science to evaluate the financial, economic and other business applications of future events. In addition to this, in today, there are lots of undergraduate and graduate degree programs about actuarial science in universities.