American Academy of Actuaries - Definition
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Table of ContentsAmerican Academy Of Actuaries DefinitionA Little More on What is the American Academy Of ActuariesThe AAAs Mission StatementsThe AAAs VisionThe Establishment of AAAWhat Actuaries DoMembership Application RequirementsAcademic Qualifications and ExperienceAcademics research on American Academy Of Actuaries AAA
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American Academy Of Actuaries Definition
The American Academy of Actuaries refers to a body of professionals that represents and brings together United States actuaries in all areas of practice. The AAA body was established in 1965 to serve as the voice of actuarial professions in areas such as public policy, integrity as well as competence.
A Little More on What is the American Academy Of Actuaries
Generally, there are many pressing issues to do with public policy that require actuarial principles sound application. For this reason, the AAA was created to provide actuarial advice and expertise to the public policymakers on a range of issues that need specific skills and qualifications like the one actuaries offer. To be a member of the AAA, an individual must have achieved actuarial education credentials from accredited institutions as well as relevant work experience. The individual must also agree to uphold the AAAs code of professional conduct. The most common work for actuaries is in financial services where they apply statistics, economics, math, and financial analysis. It is for the purpose of manage, evaluate, and solve various issues in their field. The organization is based in the United States capital, and by January 2016, it had over 18,500 members.
The AAAs Mission Statements
The organization was created with a focus to serve the public as well as the United States actuarial profession. It accomplishes the following:
- Advocating on behalf of professionals: It acts as the United States actuarial professions public voice. The organization identifies issues and ensures that it addresses them on behalf of the public interest. This is more especially in unique matters that involve the understanding of actuarial science.
- Offering advice to decision-makers of public policies: It provides information that is independent and objective, including education, to ensure that there is a formation of sound public policy.
- Offering actuarial expertise: The organization ensures that there is the establishment, maintenance, as well as enforcement of high professional standards of qualification, conduct, and practice in the actuarial field. It advances the professional practice of its members by informing and educating them on professionalism and public policy issues, including any emerging practices that they need to know.
- Providing professional development opportunities: The AAA ensures that its members are able to advance their professionalism through service to the profession and volunteerism.
The AAAs Vision
The vision of the organization is to make sure that the financial security systems in the United States are sound and sustainable. Its vision is also to ensure that actuaries are viewed as preeminent experts when it comes to risk and financial security management systems.
The Establishment of AAA
The AAA was established on October 25, 1965, first as an unincorporated association. It later became incorporated in 1966, with Henry F. Rood as its first president, who was himself an actuary. The AAA has its origin in Chicago but it moved its headquarters to Washington D.C. The maintenance of the professions standards is through the work of the following:
- The Actual Standards Board
- The Actuarial Board for Counseling and Discipline
- The AAAs Committee on Qualification
What Actuaries Do
The actuaries do the following:
- Apply their expertise in mathematics to project associated costs to a given risk
- Aid in evaluating long-term financial decisions implications
- Management of the financial risks
- Estimating the costs of future uncertain items
Membership Application Requirements
To qualify to be a member of the American Academy of Actuaries, you need to meet certain requirements. Meet either one or more of the following:
- Associateship in the Casualty Actuarial Society
- Associateship in the society of Actuaries
- FSPA or MSPA of the American Society of Pension Professionals and Actuaries
- Membership in the Conference of Consulting Actuaries
- Enrolled actuary status under Title 3, Section C of the Employee Retirement Income Security Act of 1974
- Fellowship in the Institute & Faculty of Actuaries in the United Kingdom
- Membership in the Colegio Nacional de Actuaries in Mexico or
- Fellowship in the Institute of Actuaries of Australia
- Any other actuarial educational credentials must be approved by the Membership Committee and the Executive Committee
You must be a resident in the United States for not less than three years. For a non-resident or a new resident must certify or confirm their familiarity with the United States laws as well as practices in his or her actuarial field of practice such as casualty, life, health, and pension.
Academic Qualifications and Experience
Obtain a Bachelors Degree To be able to become an actuary, an individual must possess a bachelors degree in areas like actuarial science, mathematics, or statistics. A degree in economics or finance is also acceptable. The aspiring actuarial candidates may also have knowledge in the use of statistical and spreadsheet computer software programs. It means that anyone with a bachelors degree in computer science can also qualify to become an actuary.
Obtain a Professional Certification According to associate actuary designation, a candidate aspiring to become an actuary must pass a series of test exams, and maintain continuing education as well as attend the necessary seminars. Generally, it can take four to six years for an actuary to reach the associate level. In addition, the actuary should also be certified by a professional society sponsor program to be able to achieve full professional status in their area of specialization. Actuaries in investment, life insurance, health insurance, and finance get certification from the Society of Actuaries. The Casualty Actuarial Society usually certifies actuaries in the field such as:
- Property and casualty by testing candidates about personal injury liability
- Medical malpractice
- Home and automobile insurance
- Workers compensation
Obtain Fellowship certification After an individual achieves the status of the associate actuary, he or she is required to obtain a fellowship certification. To obtain this, he or she is expected to do specific exams, have a set level of experience, and continuing education. For a candidate to reach the fellowship level, it will take him or her two to three years. Actuaries are allowed to complete this certification on the job. Employers usually provide time for such individuals to study and pay the examination fee for those actuaries that seek to make advancement in their careers.
Academics research on American Academy Of Actuaries AAA
History ofactuarialprofession, Hickman, J. (2006). History of actuarial profession.Encyclopedia of actuarial science,2. A profession is an occupation or vocation requiring advanced study in a specialized field. The actuarial profession started out from life insurance and pension plans. Later, its development ran parallel to the accounting profession. To safeguard the goals and objectives of the profession, actuarial organizations were established on an international level but also on a national level where often rules for proper accreditation have been established. Economic and financial developments have broadened the required skills of an actuary. The future actuary will face new challenges that emerge from regulation, globalization and expanding knowledge.