Actuary (insurance industry)

from Wikipedia, the free encyclopedia

Actuaries are scientifically trained experts who deal with the modeling , evaluation and control of risks in insurance , building society savings or retirement provision on the basis of mathematical-statistical methods of actuarial mathematics . In particular, they deal with probability theory , mathematical statistics and financial mathematics . They differ from actuaries in that they have extensive knowledge of insurance, even outside of pure actuarial mathematics.

history

Originally, the actuary ( Latin actuarius , 'fast writer in negotiations', from agere ' to act') was a writer in the Roman Senate . He was the keeper of the minutes, but not for a secret senate resolution ( actum tacitum ) that the senators themselves had to make. Since the Senate was also the highest Roman court, this designation was carried over to court clerks in general, in Germany until the 19th century, in church courts until today. Thus Johann Wierich Schmedding in the official inquiry about the court conditions listed in Bochum from 1714 as actuary at the Municipal Court. Johann Wolfgang Goethe met the actuary Johann Daniel Salzmann while studying law in April 1770 in Strasbourg .

In England, the mathematician Edward Rowe Mores (1731–1778) founded the mutual society The Society of Equitable Assurance on Lives and Survivorships in September 1762 , whose statutes with the Actuary as chairman of the board, a word that has since fallen out of use with a new meaning back into the English language introduced. Actuary became his official title, making him the first actuary in the insurance business.

In England the title of actuary was officially cultivated with the establishment of the Institute of Actuaries in July 1848. The first International Congress of Actuaries (ICA) took place in Brussels in September 1895 , while the Actuarial Congress held in Berlin in September 1906 was officially called the World Conference for Insurance Science . Before that, on April 4, 1903, the actuarial mathematics department of the German Association for Insurance Science was set up in Berlin . The first definition of the actuarial profession in Germany was in September 1899, when an association of actuaries, “life insurance technicians”, was founded.

In the Brockhaus Encyclopedia of 1928, the actuary was defined as the official title previously used in the judiciary for trainee lawyers.In 1966, his role as an insurance and business mathematician was added for the first time in international insurance.In 1996, the actuary was not only the clerk and recorder, but also the scientific actuarial and economic mathematician. The implementation of the EC insurance directives in German law in July 1994 even created a legal basis for the actuary - following the example of the British appointed actuary - in the function of the responsible actuary .

Legal issues

According to § 141 VAG , every life insurance company has to appoint a responsible actuary who must be reliable and professionally qualified. Professional suitability requires sufficient knowledge of actuarial mathematics and professional experience. Sufficient professional experience is to be assumed regularly if proof of at least three years of activity as an actuary is proven. The further content of the provision shows how important the position of the actuary is to insurance supervision. The actuary must be named to BaFin before appointment and is appointed and dismissed with the consent of the supervisory board (Section 141 (2) and (2a) VAG). He has according to § 141 para 3 VAG ensure. That in the calculation of insurance premiums and actuarial reserves the principles of § 138 VAG and because of § 88 para 3 VAG ordinances issued and the. § 341f are adhered to HGB (premium reserve). In doing so, he must check the company's financial situation, in particular, to ensure that the obligations arising from the insurance contracts can be met at all times and that the company has sufficient funds.

However, the activity of the actuary is not limited to life insurance companies. According to section 161 VAG in conjunction with section 141 (1) sentence 1 VAG, an actuary is also to be appointed for accident insurance with premium refunds, according to section 156 VAG also for substitutive health insurance and property / casualty insurance with pension benefits from accident or liability insurance .

tasks

An actuary uses simulation techniques to create mathematical models with which target values ​​for the future can be calculated on the basis of a large number of analyzed data from the past. These are intended to provide information about the underwriting result to be expected for a current or future period and the probability of deviations from this expected result. As part of the premium calculation, actuaries use mathematical methods to create risk models with which the risks to be insured are mapped as realistically as possible in a portfolio. From such a model they then develop a price system (technically also referred to as a tariff ), which forms the basis for the premium assessment for the insurance of such risks. Its tasks are essential for the core business of an insurance company because insurance technology is based on actuarial mathematics and its numerous complex models and formulas. The actuary's tasks are not limited to insurance , but are also required in building society , capital investments , retirement provision and reinsurance . Actuaries mostly work for insurers , also for authorities , in consulting firms , in appraisal offices , for auditing companies and as freelancers, for example as appraisers or trustees . You check the coverage by reinsurance with primary insurers . The results of the reviews by the responsible actuary are recorded in the annual financial statements and in an annual explanatory report.

job

The actuary does not have a closed job description , the job title is not legally protected. On the other hand, for the designation Actuary DAV one must have completed a training prescribed by the German Actuarial Association (DAV eV). The prerequisite for this is a completed mathematical education at a university. This university degree can be replaced by another, equivalent degree (business mathematics, statistics, physics) upon request. Otherwise, a mathematical entrance examination (length of 90 minutes) must be taken before all other exams. Another prerequisite is proof of basic knowledge of probability theory and statistics. According to the principles of the former FOT, no objections will be raised to the appointment as responsible actuary if he has successfully completed a mathematical education at a university, technical college or technical college and he has sufficient actuarial knowledge and a complete 3-year practice as an actuary can prove. He is an expert in the fields of insurance and supply, finance, insurance and business mathematics, as well as pension and pension advice.

Actuary

The department of a German insurer that is entrusted with the tasks of actuaries was previously called the mathematical department . Today they are mainly referred to as actuaries . The head of a mathematics department used to be called chief mathematician , whereas today there is no specific designation for the head of the actuarial department. However, many actuaries are headed directly by the responsible actuary. However, his position is independent of the management function of the actuary.

Independent actuarial companies were founded a little later in Germany than in Anglo-Saxon countries. Some consulting or auditing firms also have their own actuaries. Today companies of all kinds buy actuarial services for the calculation of unusual economic risks from such companies.

Professional organizations

Actuaries are organized nationally and internationally in professional associations, for example in the German Actuarial Association (DAV) e. V., the Swiss Association of Actuaries (SAV), the Association of Actuaries of Austria (AVÖ) or the Swedish Association of Actuaries . The international actuarial organization is the International Actuarial Association (IAA). As a representative of almost all actuarial associations worldwide, it coordinates the requirements for training, further education, professional standards and mutual recognition. It also proposes standards for actuarial activities that can be applied or adopted by actuaries or national actuarial associations.

The German Actuarial Association (DAV) e. V. is a professional organization with strict professional admission criteria, but membership is not compulsory. It has taken on the task of ensuring the actuaries have the necessary qualifications and offers a comprehensive training and further education program. With admission to the DAV, the actuaries undertake to follow the statutes of the association. The actuary must observe the so-called “actuarial principles”. Successful completion of the training is confirmed with the title of actuary (DAV) , correspondingly in Switzerland and Austria. "Actuary DAV" is an internal title and quality feature for professional activity.

Web links

Individual evidence

  1. ↑ Friedrich Christoph Schlosser: About the sources of the later Latin historians, especially about newspapers, public announcements, archives and their use under the emperors . In: Friedrich Christoph Schlosser, Gottlob August Bercht (ed.): Archive for history and literature . tape 1 . Verlag der Brönner'schen Buchhandlung, Frankfurt am Main 1830, p. 80–106 (89) ( digitized in Google book search).
  2. ^ City of Bochum, The city school of Bochum
  3. ^ Peter Koch : Contributions to the history of the German insurance industry . Ed .: Heinz Leo Müller-Lutz. tape 2 : On the occasion of Peter Koch's 70th birthday. Insurance industry, Karlsruhe 2005, ISBN 3-89952-193-5 , p. 128 ( limited preview in Google Book search).
  4. ^ Peter Koch: Contributions to the history of the German insurance industry. Karlsruhe 2005, p. 127.
  5. ↑ Georg H. Schroer: The responsible actuary in life insurance , 2000, p. 82.
  6. ↑ Circular R 3/95, VerBAV 1995, p. 311 f.
  7. ↑ Georg H. Schroer: The responsible actuary in life insurance , 2000, p. 30.
  8. ↑ DAV - About us
  9. ↑ Georg H. Schroer: The responsible actuary in life insurance , 2000, p. 29.