Actuarial science is concerned with the application of mathematical methods to finance and insurance, particularly where this relates to the assessment of risks in the long term. Actuaries are professionals who are qualified in this field.
Actuarial science covers a number of interrelating disciplines, in particular the mathematics of probability and statistics. Traditional actuarial science focussed on the analysis of mortality and the production of life tables, and the application of compound interest.
More recently, actuarial science has come to embrace more sophisticated mathematical modelling of finance. Ideas from financial economics are also becoming increasingly influential in actuarial thinking.
