To Sustain a Vital and Vibrant Actuarial Profession

Insurance markets are different from most other markets. Insurance markets have an inherent self-destructive tendency that can cause market failure. However, insurance markets not only exist, they thrive. This paper explores the essential role that actuaries play in countering problems that can cause market failure. Armed with our mathematical and business skills and strong sense of professionalism, actuaries are essential to the successful growth of insurance companies and insurance markets. The breakdown of barriers among segments of the financial services industry creates an opportunity for actuaries to apply these same skills to noninsurance financial institutions. Actuaries have a strong claim to becoming the profession the public relies upon to ensure that an adequate balance is kept between profits and solvency. The foundation of this claim is not the superiority of our intellectual tools. It is the advantages to society of actuaries as a well-defined, recognized group of trustworthy and professional financial managers.