Actuarial Jargon Buster
Associate – as an Associate of the IFoA you can work as an actuary, although you will not have the same depth of knowledge of a specialist subject possessed by a Fellow; in the UK you will also be unable to work in a UK reserved role.
Certified Actuarial Analyst – this is a brand new qualification from the Institute and Faculty of Actuaries (IFoA) that will professionalise those working in an technical or analytical role.
Fellow – as a Fellow of the IFoA you will have a wide technical understanding of the following areas: pensions, life and general insurance, investment, corporate finance, enterprise risk management, healthcare; and a deep technical understanding of at least one of them. You will also be able to fulfil all the UK statutory responsibilities of an actuary and undertake actuarial reserved roles and will be recognised as a fully qualified actuary.
Financial mathematics – Complicated theories and complex technical calculations in the context of real life events is the crux of knowledge for the calculations actuaries need in order to model observed economic phenomena.
Model programming – Actuaries use complex software packages to help them conduct their calculations and forecasts. They have the know-how to develop these models within the software.
Transfer values – This applies to actuaries who work in the pensions sector. Actuaries conduct calculations to come up with the value of a pension for a customer for if they chose to switch to a different scheme.
Quantitative analysis – Actuaries collect various pieces of information and use statistical and mathematical modelling to decipher patterns. They use this information to make forecasts in the probability of certain events occurring to inform things like pricing decisions for insurance packages.