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.