PRINCIPLES OF ACTUARIAL SCIENCE - SOA - Society of Actuaries

PRINCIPLES OF ACTUARIAL SCIENCE - SOA - Society of Actuaries

64 Pages · 2000 · 2.48 MB · English

transactions of society of actuaries 1992 vol. 44 principles of actuarial science society of acirjaries commiti'ee on actuarial prinicples*

PRINCIPLES OF ACTUARIAL SCIENCE - SOA - Society of Actuaries free download

TRANSACTIONS OF SOCIETY OF ACTUARIES 1992 VOL. 44 PRINCIPLES OF ACTUARIAL SCIENCE SOCIETY OF ACIRJARIES COMMITI'EE ON ACTUARIAL PRINICPLES* ABSTRACT The Committee on Actuarial Principles is charged with identifying, cir- culating and organizing actuarial principles (as distinct from standards) and recommending the resulting statements of principles to the Board of Gov- ernors for review and adoption. In October 1991, the Board accepted the Committee's statement entitled "Principles of Actuarial Science." This statement, which constitutes the following paper, is an expression of opinion by the Committee on Actuarial Principles and has been authorized by the Board of Governors. It has not been submitted to the vote of the membership and thus should not be construed as an expression of opinion by the Society of Actuaries. Editor's note: The Committee believes that continued publication of dis- cussions of Principles of Actuarial Science is appropriate and may prove beneficial. Therefore, written discussions of this paper will continue to be considered for publication. For publication in Volume XLV of the Trans- actions, discussions must be received by March I, 1994. PREAMBLE Actuarial science, the foundation for the actuarial profession, is an applied science. As an applied science, its theory is grounded in certain observations about the real world. The practice of any profession is shaped by the experience of its members, as well as by accumulated scientific knowledge. The practice of the actuarial profession is based on: • Principles--Statements grounded in observation and experience. Prin- ciples will be subject to change only if fundamental changes occur in our understanding of the observed world. • Methodologies--Descriptions of applications of the Principles to defined areas of practice. Since Methodologies represent the state of the art, they Note: This paper has been written by members of the Society of Actuaries. Its application should be limited to the areas

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