Study on Actuarial Science and Actuaries-The Pioneer of Insurance

Abstract

The insurance sector plays an indispensable role in economic development of a country through mobilization of savings and development of funds to the productive sectors. The sector has been playing a dominant role in the financial system in the country and also has a significant socioeconomic function making inroads into the interiors of the economy. Insurance is a concept of prediction of risk and uncertainties of future at present. Hence, there is a tendency of changes in insurance sector and insurance companies, requires statistical and mathematical models to mitigate these risks/changes. For this purpose, it requires necessary mathematical and statistical calculation based on various risk assessing factors of both insurer and insured. So the Statistical and Probabilistic techniques play an important role in a wide variety of practical situations in Actuarial Science. An actuary by profession is a business expert proficient in financial security systems who deals with a focus on complex financial evaluation and deal effectively in cases of unforeseeable events to curb losses. These professional viewed as creator of insurance business and their importance can be witnessed in many of the people-oriented financial and insurance plans viz. life and non-life insurance, pension plans, retirement benefits, unemployment insurance through their mathematics, statistics, economics, finance and modelling skills in evaluating and projecting the risks involved in futuristic uncertain events. Actuarial profession is more than 400 years old but still relevant in today's real world problems. The present research study makes an attempt to find out the importance of Actuarial science and actuarial professionals in insurance business and study found that their importance is measured in higher degree and they are the pioneers in establishing a proper insurance business in the market and actuarial science is master of all sciences of risk management.