Definition of Qualified Actuary
A Qualified Actuary is a professional who has completed specific education and experience requirements that qualify them to issue actuarial opinions. This qualification is regulated under the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States enacted by the American Academy of Actuaries (AAA).
Requirements to be Considered a Qualified Actuary
- Education: The individual must meet the basic educational requisites which might vary depending upon the specific area of insurance practice.
- Experience: Adequate practical experience in the relevant field of actuarial practice as stipulated by governing bodies.
- Continuing Education: Ongoing professional development as specified by the Qualification Standards.
- Membership: Must be an active member in good standing in the American Academy of Actuaries.
- Accreditation: The person must be recognized by the Casualty Practice Council of the AA as qualified to sign casualty loss reserve opinions.
Additional feats and continuing education specifics are dictated by the NAIC Property and Casualty Annual Statement Requirements and can also vary based on line of business or sub-specialties within the actuarial field.
Importance in the Insurance Industry
Qualified actuaries play a crucial role in the insurance industry primarily in assessing risk and financial stability of insurance companies. Credentials are key in providing confidence to policyholders, underwriters, and regulators regarding the professional assessments made concerning the financial health of the insurer.
