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The Insurance Times
environments or particular business situations. So
the actuary goes through all the pros and cons and
reach for an optimum solution.
(iii) An actuary has to consider all the constraints,
whether they seem reasonable or not. The actuary
may have to devise a system within the given
constraints imposed by the regulators, management,
capital or statutory requirements. Yet he may also
break the constraints and recommend new systems,
dimensions, pricing or procedures to develop an
optimal solution.
(iv) The marketplace is the ultimate judge of the
actuary's performance. Pricing procedures are
judged by their ability to attract profitable business,
and reserving procedures are judged by their ability
to forecast actual loss emergence.
3) Why the specialized education of actuaries
is so important?
Ans. The actuarial education system distinguishes it from other
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