Actuarial science is a discipline that applies mathematical and statistical methods to assess risk in various industries and professions, including insurance, pension, finance, investment, and social insurance. It involves the use of rigorous mathematics to model and analyze data to make informed decisions in the presence of uncertainties. Actuarial science includes a number of interrelated subjects, including mathematics, probability theory, statistics, finance, economics, financial accounting, and computer science.

Actuaries use mathematical models to predict or forecast the likelihood of certain events occurring in the future and the expected financial impact of those events. They analyze trends in past experience and make reasonable assumptions when there are no reliable data to develop a model of what the future may look like. Actuarial science attempts to quantify the risk of an event occurring using probability analysis so that its financial impact can be determined.

Actuarial science is typically used in the insurance industry by actuaries to allocate funds to pay out any claims that might result from an event. In traditional life insurance, actuarial science focuses on the analysis of mortality, the production of life tables, and the application of compound interest. Actuaries also help to assess the overall risk from catastrophic events in relation to its underwriting capacity or surplus.

Actuarial science is a highly specialized field that requires a strong background in mathematics, statistics, and business. Actuaries typically need a bachelors degree to enter the occupation and must pass a series of exams to become certified. Actuaries work for insurance companies, consulting firms, and other organizations that need to manage financial risk.