FUNDAMENTAL CONCEPTS OF ACTUARIAL SCIENCE is a well researched Project Topic, it can be used as a guide or framework for your Academic Research.
The purpose of this monograph is the identification and the decline-
the action of the fundamental intellectual concepts upon which actual-
ial science is based. These concepts are relatively few in number,
and maybe well understood by the actuaries who employ them;
but the actuarial profession has not previously organized these con-
cepts into a cohesive whole.
Through the Actuarial Standards Board, and a similar effort in
Canada, North American actuaries are currently engaged in the
development of actuarial standards, guides to the performance of
a wide range of actuarial tasks. A related effort is a development
of actuarial principles, recently undertaken by the Casualty Actuarial Society and the Society of Actuaries.
The profession seems to be moving toward a three-tier structure. The first level is composed of the fundamental concepts at which this monograph is aimed, and the third the standards toward which the overall effort is eventually directed. The second level includes the principles that actuaries employ, as they apply fundamental concepts to practical problems. Principles may be more specific to one kind of actuarial endeavor and may place more emphasis on methodology, than fundamental concepts, though there may well be considerable
This monograph leaves the development of standards to the Actuarial Standards Board, the definition and statement of actuarial
principles to the committees on actuarial principles, and concern-
rates on fundamental concepts or foundations (these two terms to be used interchangeably) of actuarial science. A sharp distinct-action between foundations and standards is drawn intentionally. The
intellectual content that underlies all of actuarial science is in the
former, while standards emphasize practice rather than theory, and
are much more detailed.
Since principles and standards are built on the foundations of
intellectual content, the development of the former must logically
await the latter. This monograph is an attempt to put forth the found dations, as a necessary preliminary step in the successful develop-
ment of standards. Standards may depend upon one or more
principles as well. This monograph is also intended as a means for emphasizing the essential unity of the actuarial profession.