Embarking on a career as a junior actuary within an insurance company is an exciting but challenging journey. Amidst the complexities of the field, one of your initial hurdles will be acquainting yourself with the multitude of acronyms that permeate actuarial discussions and documents.
In this comprehensive guide, we've diligently compiled an extensive list of these actuarial acronyms, making it easier for you to navigate the intricate world of insurance and risk assessment.
Actuarial acronyms
| Acronym | Full name |
|---|---|
| CSM | Contractual Service Margin |
| EEV | European Embedded Value |
| EIOPA | European Insurance and Occupational Pensions Authority |
| ESG | Economic Scenario Generator |
| EV | Embedded Value |
| FS | Free Surplus |
| GM | General Model |
| IF | In-Force |
| IFRS | International Financial Reporting Standard |
| IM | Internal Model |
| MA | Matching Adjustment |
| MCEV | Market-Consistent Embedded Value |
| NB | New Business |
| NST | National Specific Template |
| ORSA | Own Risk and Solvency Assessment |
| QRT | Quantitative Reporting Template |
| RA | Risk Adjustment |
| RM | Risk Margin |
| RSR | Regular Supervisory Report |
| SCR | Solvency Capital Requirement |
| SF | Standard Formula |
| SFCR | Solvency and Financial Condition Report |
| UFR | Ultimate Forward Rate |
| UL | Unit-Linked |
| VA | Volatility Adjustment |
| VFA | Variable Fee Approach |
| VIF | Value In-Force |
| YE | year-end |
Actuarial notation
Interest
| Symbol | Meaning |
|---|---|
| \( i \) | The effective rate of interest, namely, the total interest earned on 1 in a year on the assumption that the actual interest (if receivable otherwise than yearly) is invested forthwith as it becomes due on the same terms as the original principal. |
| \( v \) | The present value of 1 due a year hence. \( v = \frac{1}{1+i} \) |
| \( d \) | The discount on i due a year hence. \( d = 1 - v \) |
| \( \require{enclose} a_{\enclose{actuarial}{n}} \) | The value of an annuity-certain of \( 1 \) per annum for \( n \) years, the payments being made at the end of each year. \( \require{enclose} a_{\enclose{actuarial}{n}} = v + v^{2} + ... + v^{n} \) |
| \( \require{enclose} \ddot{a}_{\enclose{actuarial}{n}} \) | The value of an annuity-certain of \( 1 \) per annum for \( n \) years, the payments being made at the beginning of each year. \( \require{enclose} \ddot{a}_{\enclose{actuarial}{n}} = 1 + v + v^{2} + ... + v^{n-1} \) |
Mortality tables
| Symbol | Meaning |
|---|---|
| \( p_{x} \) | The probability that (x) will live 1 year (survival). |
| \( q_{x} \) | The probability that (x) will die within 1 year (mortality). |
| \( {}_{n} p_{x} \) | The probability that (x) will live n years. |
| \( {}_{n} q_{x} \) | The probability that (x) will die within n years. |
| \( a_{x} \) | An annuity, first payment at the end of a year, to continue during the life of (x). |
| \( \ddot{a}_{x} \) | An annuity-due to continue during the life of (x), the first payment to be made at once. \( \ddot{a}_{x} = 1+a_{x} \) \( \ddot{a}_{x} = \displaystyle\sum_{k=0}^{\infty} v^{k} \cdot {}_{k} p_{x} \) |
| \( \require{enclose} a^{}_{x:} {}^{}_{\enclose{actuarial}{n}} \) | n-year temporary life annuity of (x) |
| \( {}_{m|} a_{x} \) | m-year deferred whole life annuity of (x) |
| \( A_{x} \) | whole life insurance of (x) \( A_{x} = \displaystyle\sum_{k=0}^{\infty} v^{k+1} \cdot {}_{k} p_{x} \cdot q_{x+k} \) |
| \( \require{enclose} A^1_{x:} {}^{}_{\enclose{actuarial}{n}} \) | n-year term insurance of (x) |
| \( \require{enclose} A^{}_{x:} {}^{1}_{\enclose{actuarial}{n}} \) | n-year pure endowment of (x) |
| \( \require{enclose} A^{}_{x:} {}^{}_{\enclose{actuarial}{n}} \) | n-year endowment insurance of (x) |
| \( {}_{m|} A_{x} \) | m-year deferred insurance of (x) |
If you come across any actuarial acronyms or notations that we've missed, or if you have any suggestions for enhancing this resource, please don't hesitate to reach out to us. We value your input and are committed to continually improving this reference guide to better assist aspiring actuaries like you. Best of luck in your actuarial journey!