Actuary

Definition of 'Actuary'

A statistician, usually employed by an insurance company, who calculates future risk by using statistical data from the past.

For example, a car insurance company may use an actuary to compile data on the likelihood of accidents at various ages of driver, taking into account past data.

This method enables insurance companies to set relevant premium levels in order to make a profit, although there can be unforeseen circumstances which can lead to varying levels of claims than in the past.