American Academy Of Actuaries - AAA

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. Actuarial Service

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

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

    The SOA is a professional organization for actuaries in the U.S., ...
  4. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
  5. Actuarial Assumption

    An actuarial assumption is an estimate of an uncertain variable ...
  6. Actuarial Science

    A discipline that assesses financial risks in the insurance and ...
Related Articles
  1. 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.
  2. Professionals

    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.
  3. Managing Wealth

    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.
  4. Financial Advisor

    A Day In The Life Of An Actuary

    We take a look at the typical workday of three actuaries who work for different types of companies and who are at different stages in their careers.
  5. Investing

    Which 2 U.S. Companies Are Still Rated AAA? (JNJ)

    If there are only two U.S. companies with a AAA rating, then they should definitely be on your watch list.
  6. Insights

    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?
  7. Markets

    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.
  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. Retirement

    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 2015

    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. How is my insurance premium calculated?

    An insurance premium is the money charged by insurance companies for coverage. Insurance premiums for services differ from ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. What is the safest investment: Treasuries, CDs, Money Markets, or mattresses?

    Where to put money that will maintain principal: Short-term,intermediate, or long term Treasuries, or a laddered CD or MM ... Read Answer >>
  6. What role did junk bonds play in the financial crisis of 2007-08?

    Discover the role that junk bonds played in the financial crisis of 2007-2008. The main issue is that toxic housing debt ... Read Answer >>
Trading Center