What is an actuary?

An actuary is a qualified professional that uses mathematics, statistics and economics predominantly to measure and quantify risk and loss.  To become an actuary a person must usually complete a bachelor’s degree at university in Actuarial Science, Economics, Mathematics or another similar discipline as well as complete professional examinations.  In Australia, actuaries complete these exams through the Actuaries Institute of Australia and must also undertake continued professional development each year to remain qualified.

Actuaries most commonly work for insurance companies or pension providers.  They calculate insurance premiums, quantify loss and project into the future.  Take car insurance as an example, an actuary will quantify the probability that a loss will occur (i.e the probability of a car being damaged or stolen) and the severity or financial impact of that loss (i.e the cost of repairs or replacement of the car).  This data combined with administration costs and profit margins will then help the insurer to determine its premiums for that year.

Here at Barton consultancy, we are a consulting actuarial firm that often undertakes non traditional actuarial work.  This includes assistance with litigation, valuations and financial model creation.  Some common areas of our practice include:

• • Superannuation valuations for family law purposes,
  • Calculating the liability arising from employee benefits such as long service leave, annual leave and sick leave,
  • Life and remainder interest valuations,
  • Retirement village valuations,
  • Crediting rate determination,
  • UK and other foreign pension valuations for transfer,
  • Inheritance issues where a spouse or child has not been adequately provided for,
  • Loss of profits or investment losses,
  • Cost of ongoing support and
  • Self managed superannuation fund actuarial certificates.

Barton Consultancy’s principal Dennis Barton has produced countless expert reports and appeared in court many times.  If you require a valuation, quantification of loss, financial projections or any other unique actuarial task do not hesitate to contact us to discuss your individual needs.