An actuarial model is a specific tool used in financial forecasting. The actions of individuals, acting for themselves or for others, who are motivated directly or indirectly to take financial advantage of a classification system. This occurs most commonly when a customer chooses its supplier based on the lowest price it can obtain rather than the supplier with the lowest overall or average price. They have been called financial architects and social mathematicians because their unique combination of analytical and business skills is helping to solve a growing variety of financial and social problems.
Actuaries make financial sense of the future.
An actuary applies mathematical models to problems of insurance and finance. To be more specific, actuaries improve financial decision making by developing models to evaluate the current financial implications of uncertain future events. Upon examination of the factors influencing the outcome, it is deemed that the potential benefits outweigh the potential drawbacks. A model relating risk and the required rate of return for a particular project or corporate entity. This model is widely utilized in estimated the expected return for stocks and other equities.