DEFINITION of 'American Academy Of Actuaries - AAA'

The American Academy of Actuaries (AAA) is a group that provides analysis to aid in public policy creation, advances the status of the actuarial profession, and sets standards of integrity and competence for actuaries.

Members of the AAA must have approved actuarial education credentials and relevant work experience, and agree to uphold the organization's code of professional conduct. Actuaries commonly work in financial services, where they use math, statistics, and economic and financial analysis to evaluate, manage and solve issues within the discipline.

BREAKING DOWN 'American Academy Of Actuaries - AAA'

The American Academy of Actuaries (AAA) is based out of Washington, D.C., and as of January 2016, there are over 18,500 members. It advocates on the behalf of professionals and encourages the general use of actuaries. It also offers actuarial expertise and advice to public policy decision makers. The vision of the AAA is sound and sustainable financial security systems in the United States and actuaries being seen as experts in the security of these systems. Its mission entails serving the public and the actuary profession.

The AAA was started on Oct. 25, 1965, as an unincorporated association. In 1966, it became incorporated, and its first president was Henry F. Rood, an actuary himself. Although the AAA originated in Chicago, it has since moved its headquarters to the nation’s capital. The profession’s standards are maintained through the work of the Actual Standards Board, the Actuarial Board for Counseling and Discipline and the AAA’s Committee on Qualification.

Who Do Actuaries Do?

Actuaries apply their mathematical expertise to project the associated costs to a particular risk. They assist in the evaluation of long-term financial implications of decisions, management of these financial risks and attempt to estimate the costs of future uncertain items. Members of the AAA receive professional resources such as assistance regarding methods, techniques and practices in their work. They also get practice notes, qualification standards and recorded professionalism webinars.

Purview of the AAA

The AAA issues numerous publications for professionals to utilize in their careers. Contingencies is a bimonthly magazine covering a wide range of actuarial topics. The AAA also publishes a monthly newsletter called Actuarial Update to inform members of public policy updates and issues. A quarterly newsletter called Enrolled Actuaries Report updates AAA members of public and private pension plans. The AAA also publishes newsletters covering health care, life insurance, retirement plans and state legislation. The AAA operates numerous committees that cover a range of topics. Academy counsels discuss issues relating to public policy works; property/casualty; life insurance; pensions and other retirement accounts; health care and Medicare; domestic and international financial reporting; and risk management.

RELATED TERMS
  1. Actuary

    A professional dealing with the assessment and management of ...
  2. Canadian Institute Of Actuaries ...

    The Canadian Institute of Actuaries, or CIA, is an organization ...
  3. Government Actuary

    An employee of the U.K. government who works for the Government's ...
  4. Actuarial Service

    Method by which corporations determine, assess and plan for the ...
  5. Actuarial Age

    An individual's life expectancy based on calculations and statistical ...
  6. Society of Actuaries (SOA)

    The SOA is a professional organization for actuaries in the U.S., ...
Related Articles
  1. Personal Finance

    Insure Your Future with a Career as an Actuary

    If you've got excellent math skills, they can add up to a lucrative career as an actuary.
  2. Financial Advisor

    Career Advice: Financial Analyst Vs. Actuary

    Read an in-depth comparison between financial analysts and actuaries, what it's like to work as each and how to determine which is best for you.
  3. Personal Finance

    The Top 5 Skills Every Actuary Needs

    The actuary profession is growing fast. Here's a look at the majors and top skills one needs to become a successful actuary.
  4. Personal Finance

    Career Advice: Accounting Vs. Actuary

    Read about what life is like as an actuary or as an accountant, how the two careers are different and how to decide which is best for you.
  5. Investing

    What Is the Value of a AAA Credit Rating? (XOM)

    Following the Exxon credit rating downgrade, investor's are asking is there any value in even having a AAA credit rating?
  6. Investing

    What Do AA+ And AAA Credit Ratings Mean?

    Whether you held a AAA or AA+ rating, the difference didn't seem to matter to Mr. Market on Monday.
  7. Investing

    Countries That Still Have The Golden AAA Credit Rating

    The U.S., Italy, Greece and others have lost the coveted AAA rating, but some countries have managed to hold onto it.
  8. Financial Advisor

    Financial Designations That Employers Require

    We break down the designations that are important to have if you want to work in the financial sector.
  9. Financial Advisor

    How Long Will You Live? This Tool Will Tell You

    Longevity-calculating tools help advisors guide clients through their financial livelihood during their retirement years. Here's a look at some of them.
  10. Personal Finance

    8 Profitable Majors For The College-Bound In 2016

    Choose your college major wisely to justify the rising cost of higher education. Here are 8 majors that lead to good jobs and high salaries.
RELATED FAQS
  1. What's the average salary of an actuary?

    Get insight into the intriguing career of risk analysis and forecasting. How much do actuaries make, and how is this field ... Read Answer >>
  2. What are the main factors that impact share prices in the insurance sector?

    Learn about some of the main factors that impact share prices in the insurance sector. Insurance companies make money by ... Read Answer >>
  3. What does amortization mean in the context of a pension plan?

    Discover when and why accountants use amortization techniques in the context of pension plans, and why those changes help ... Read Answer >>
  4. What caused the European / Eurozone debt crisis?

    Understand how insurance companies price insurance premiums, and learn the importance of data and statistics in the insurance ... Read Answer >>
Hot Definitions
  1. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  2. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  3. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  4. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  5. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  6. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
Trading Center