The SOA and CAS are considering exposure of a draft of Principles Underlying Actuarial Science (which
may have occurred by the time of this session). If exposure is approved, the draft will be available at the
organizations' Web sites and copies will be available at this session. Not only will this session introduce
the draft, but you'll also have an opportunity to provide comments. This is an extensive revision to the
prior draft distributed in 1999.
The objective of Principles Underlying Actuarial Science is to articulate the current understanding of the
significant principles that form the scientific framework underlying all areas of actuarial practice. The
intended audience includes practicing actuaries, researchers and others, such as representatives of
standard-setting organizations. This articulation is not immutable; if fundamental changes occur in our
understanding of the world, or if a better expression of the ideas is developed, this statement of principles
should be revised. Principles abstract the key elements of the scientific framework. Principles are not
prescriptions that specify how actuarial work is to be done, but are statements grounded in observation
and experience. As our experience and understanding continue to develop, the articulation of these
principles will evolve.