An actuary is a business professional who deals with the measurement and management of risk and uncertainty (BeAnActuary 2011a). The name of the corresponding field is actuarial science. These risks can affect both sides of the balance sheet and require asset management, liability management, and valuation skills (BeAnActuary 2011b). Actuaries provide assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms (Trowbridge 1989, p. 7).
While the concept of insurance dates to antiquity (Johnston 1903, §475–§476, Loan 1992, Lewin 2007, pp. 3–4), the concepts needed to scientifically measure and mitigate risks have their origins in the 17th century studies of probability and annuities (Heywood 1985). Actuaries of the 21st century require analytical skills, business knowledge, and an understanding of human behavior and information systems to design and manage programs that control risk (BeAnActuary 2011c). The actual steps needed to become an actuary are usually country-specific; however, almost all processes share a rigorous schooling or examination structure and take many years to complete (Feldblum 2001, p. 6, Institute and Faculty of Actuaries 2014).
The profession has consistently been ranked as one of the most desirable (Riley 2013). In various studies, being an actuary was ranked number one or two multiple times since 2010 (Thomas 2012, Weber 2013, CareerCast 2015).
|Insurance, Reinsurance, Pension plans, Social welfare programs|
|Competencies||Mathematics, finance, analytical skills, business knowledge|
|See Credentialing and exams|
|Insurance companies, superannuation funds, consulting firms and government|
Actuaries use skills primarily in mathematics, particularly calculus-based probability and mathematical statistics, but also economics, computer science, finance, and business. For this reason, actuaries are essential to the insurance and reinsurance industries, either as staff employees or as consultants; to other businesses, including sponsors of pension plans; and to government agencies such as the Government Actuary's Department in the United Kingdom or the Social Security Administration in the United States of America. Actuaries assemble and analyze data to estimate the probability and likely cost of the occurrence of an event such as death, sickness, injury, disability, or loss of property. Actuaries also address financial questions, including those involving the level of pension contributions required to produce a certain retirement income and the way in which a company should invest resources to maximize its return on investments in light of potential risk. Using their broad knowledge, actuaries help design and price insurance policies, pension plans, and other financial strategies in a manner that will help ensure that the plans are maintained on a sound financial basis (Bureau of Labor Statistics 2015, Government Actuary's Department 2015).
Most traditional actuarial disciplines fall into two main categories: life and non-life.
Life actuaries, which include health and pension actuaries, primarily deal with mortality risk, morbidity risk, and investment risk. Products prominent in their work include life insurance, annuities, pensions, short and long term disability insurance, health insurance, health savings accounts, and long-term care insurance (Bureau of Labor Statistics 2015). In addition to these risks, social insurance programs are influenced by public opinion, politics, budget constraints, changing demographics, and other factors such as medical technology, inflation, and cost of living considerations (GAO 1980, GAO 2008).
Non-life actuaries, also known as property and casualty or general insurance actuaries, deal with both physical and legal risks that affect people or their property. Products prominent in their work include auto insurance, homeowners insurance, commercial property insurance, workers' compensation, malpractice insurance, product liability insurance, marine insurance, terrorism insurance, and other types of liability insurance (AIA 2014).
Actuaries are also called upon for their expertise in enterprise risk management (Bureau of Labor Statistics 2015). This can involve dynamic financial analysis, stress testing, the formulation of corporate risk policy, and the setting up and running of corporate risk departments (Institute and Faculty of Actuaries 2011b). Actuaries are also involved in other areas of the financial services industry, such as analysing securities offerings or market research (Bureau of Labor Statistics 2015).
On both the life and casualty sides, the classical function of actuaries is to calculate premiums and reserves for insurance policies covering various risks (Institute and Faculty of Actuaries 2014). On the casualty side, this analysis often involves quantifying the probability of a loss event, called the frequency, and the size of that loss event, called the severity. The amount of time that occurs before the loss event is important, as the insurer will not have to pay anything until after the event has occurred. On the life side, the analysis often involves quantifying how much a potential sum of money or a financial liability will be worth at different points in the future. Since neither of these kinds of analysis are purely deterministic processes, stochastic models are often used to determine frequency and severity distributions and the parameters of these distributions. Forecasting interest yields and currency movements also plays a role in determining future costs, especially on the life side (Tolley, Hickman & Lew 2012).
Actuaries do not always attempt to predict aggregate future events. Often, their work may relate to determining the cost of financial liabilities that have already occurred, called retrospective reinsurance, or the development or re-pricing of new products.
Actuaries also design and maintain products and systems. They are involved in financial reporting of companies' assets and liabilities. They must communicate complex concepts to clients who may not share their language or depth of knowledge. Actuaries work under a code of ethics that covers their communications and work products (ASB 2013).
As an outgrowth of their more traditional roles, actuaries also work in the fields of risk management and enterprise risk management for both financial and non-financial corporations (D'Arcy 2005). Actuaries in traditional roles study and use the tools and data previously in the domain of finance (Feldblum 2001, p. 8). The Basel II accord for financial institutions (2004), and its analogue, the Solvency II accord for insurance companies (to come into effect in 2016), require institutions to account for operational risk separately, and in addition to, credit, reserve, asset, and insolvency risk. Actuarial skills are well suited to this environment because of their training in analyzing various forms of risk, and judging the potential for upside gain, as well as downside loss associated with these forms of risk (D'Arcy 2005).
Actuaries are also involved in investment advice and asset management, and can be general business managers and chief financial officers (Mungan 2002, Stefan 2010). They analyze business prospects with their financial skills in valuing or discounting risky future cash flows, and apply their pricing expertise from insurance to other lines of business. For example, insurance securitization requires both actuarial and finance skills (Krutov 2006). Actuaries also act as expert witnesses by applying their analysis in court trials to estimate the economic value of losses such as lost profits or lost wages (Wagner 2006).
The basic requirements of communal interests gave rise to risk sharing since the dawn of civilization. For example, people who lived their entire lives in a camp had the risk of fire, which would leave their band or family without shelter. After barter came into existence, more complex risks emerged and new forms of risk manifested. Merchants embarking on trade journeys bore the risk of losing goods entrusted to them, their own possessions, or even their lives. Intermediaries developed to warehouse and trade goods, which exposed them to financial risk. The primary providers in extended families or households ran the risk of premature death, disability or infirmity, which could leave their dependents to starve. Credit procurement was difficult if the creditor worried about repayment in the event of the borrower's death or infirmity. Alternatively, people sometimes lived too long from a financial perspective, exhausting their savings, if any, or becoming a burden on others in the extended family or society (Lewin 2007, p. 3).
In the ancient world there was not always room for the sick, suffering, disabled, aged, or the poor—these were often not part of the cultural consciousness of societies (Perkins 1995). Early methods of protection, aside from the normal support of the extended family, involved charity; religious organizations or neighbors would collect for the destitute and needy. By the middle of the 3rd century, 1,500 suffering people were being supported by charitable operations in Rome (Perkins 1995). Charitable protection remains an active form of support in the modern era (GivingUSA 2009), but receiving charity is uncertain and is often accompanied by social stigma. Elementary mutual aid agreements and pensions did arise in antiquity (Thucydides). Early in the Roman empire, associations were formed to meet the expenses of burial, cremation, and monuments—precursors to burial insurance and friendly societies. A small sum was paid into a communal fund on a weekly basis, and upon the death of a member, the fund would cover the expenses of rites and burial. These societies sometimes sold shares in the building of columbāria, or burial vaults, owned by the fund (Johnston 1903, §475–§476). Other early examples of mutual surety and assurance pacts can be traced back to various forms of fellowship within the Saxon clans of England and their Germanic forebears, and to Celtic society (Loan 1992).
Non-life insurance started as a hedge against loss of cargo during sea travel. Anecdotal reports of such guarantees occur in the writings of Demosthenes, who lived in the 4th century BCE (Lewin 2007, pp. 3–4). The earliest records of an official non-life insurance policy come from Sicily, where there is record of a 14th-century contract to insure a shipment of wheat (Sweeting 2011, p. 14). In 1350, Lenardo Cattaneo assumed "all risks from act of God, or of man, and from perils of the sea" that may occur to a shipment of wheat from Sicily to Tunis up to a maximum of 300 florins. For this he was paid a premium of 18% (Lewin 2007, p. 4).
During the 17th century, a more scientific basis for risk management was being developed. In 1662, a London draper named John Graunt showed that there were predictable patterns of longevity and death in a defined group, or cohort, of people, despite the uncertainty about the future longevity or mortality of any one individual. This study became the basis for the original life table. Combining this idea with that of compound interest and annuity valuation, it became possible to set up an insurance scheme to provide life insurance or pensions for a group of people, and to calculate with some degree of accuracy each member's necessary contributions to a common fund, assuming a fixed rate of interest. The first person to correctly calculate these values was Edmond Halley (Heywood 1985). In his work, Halley demonstrated a method of using his life table to calculate the premium someone of a given age should pay to purchase a life-annuity (Halley 1693).
James Dodson's pioneering work on the level premium system led to the formation of the Society for Equitable Assurances on Lives and Survivorship (now commonly known as Equitable Life) in London in 1762. This was the first life insurance company to use premium rates that were calculated scientifically for long-term life policies, using Dodson's work. After Dodson's death in 1757, Edward Rowe Mores took over the leadership of the group that eventually became the Society for Equitable Assurances. It was he who specified that the chief official should be called an actuary (Ogborn 1956, p. 235). Previously, the use of the term had been restricted to an official who recorded the decisions, or acts, of ecclesiastical courts, in ancient times originally the secretary of the Roman senate, responsible for compiling the Acta Senatus (Ogborn 1956, p. 233). Other companies that did not originally use such mathematical and scientific methods most often failed or were forced to adopt the methods pioneered by Equitable (Bühlmann 1997, p. 166).
In the 18th and 19th centuries, computational complexity was limited to manual calculations. The actual calculations required to compute fair insurance premiums are complex. The actuaries of that time developed methods to construct easily used tables, using sophisticated approximations called commutation functions, to facilitate timely, accurate, manual calculations of premiums (Slud 2006). Over time, actuarial organizations were founded to support and further both actuaries and actuarial science, and to protect the public interest by ensuring competency and ethical standards (Hickman 2004, p. 4). Since calculations were cumbersome, actuarial shortcuts were commonplace.
Non-life actuaries followed in the footsteps of their life compatriots in the early 20th century. In the United States, the 1920 revision to workers' compensation rates took over two months of around-the-clock work by day and night teams of actuaries (Michelbacher 1920, pp. 224, 230). In the 1930s and 1940s, rigorous mathematical foundations for stochastic processes were developed (Bühlmann 1997, p. 168). Actuaries began to forecast losses using models of random events instead of deterministic methods. Computers further revolutionized the actuarial profession. From pencil-and-paper to punchcards to microcomputers, the modeling and forecasting ability of the actuary has grown exponentially (MacGinnitie 1980, pp. 50–51).
Another modern development is the convergence of modern financial theory with actuarial science (Bühlmann 1997, pp. 169–171). In the early 20th century, actuaries were developing techniques that can be found in modern financial theory, but for various historical reasons, these developments did not achieve much recognition (Whelan 2002). In the late 1980s and early 1990s, there was a distinct effort for actuaries to combine financial theory and stochastic methods into their established models (D'Arcy 1989). In the 21st century, the profession, both in practice and in the educational syllabi of many actuarial organizations, combines tables, loss models, stochastic methods, and financial theory (Feldblum 2001, pp. 8–9), but is still not completely aligned with modern financial economics (Bader & Gold 2003).
As there are relatively few actuaries in the world compared to other professions, actuaries are in high demand, and are highly paid for the services they render (Hennessy 2003, Kurtz 2013). As of 2016, in the United States, newly credentialed actuaries on average earn around $100,000 per year, while more experienced actuaries can earn over $150,000 per year (Ezra Penland 2016). Similarly, a 2014 survey in the United Kingdom indicated a starting salary for a newly credentialed actuary of about £50,000; actuaries with more experience can earn well in excess of £100,000 (Crail 2014).
The actuarial profession has been consistently ranked for decades as one of the most desirable. Actuaries work comparatively reasonable hours, in comfortable conditions, without the need for physical exertion that may lead to injury, are well paid, and the profession consistently has a good hiring outlook (Riley 2013). Not only has the overall profession ranked highly, but it also is considered one of the best professions for women (Shavin 2014), and one of the best recession-proof professions (Kiviat 2008). In the United States, the profession was rated as the best profession by CareerCast, which uses five key criteria to rank jobs—environment, income, employment outlook, physical demands, and stress, in 2010 (Needleman 2010), 2013 (Weber 2013), and 2015 (CareerCast 2015). In other years, it remained in the top 10 (Thomas 2012, CareerCast 2014, CareerCast 2016). In the United Kingdom (Ugwumadu 2013), and around the world (ESSEC 2014), actuaries continue to be highly ranked as a profession.
Becoming a fully credentialed actuary requires passing a rigorous series of professional examinations, usually taking several years. In some countries, such as Denmark, most study takes place in a university setting (Norberg 1990, p. 407). In others, such as the US, most study takes place during employment through a series of examinations (SOA 2018, CAS 2018). In the UK, and countries based on its process, there is a hybrid university-exam structure (Institute and Faculty of Actuaries 2011a).
As these qualifying exams are extremely rigorous, support is usually available to people progressing through the exams. Often, employers provide paid on-the-job study time and paid attendance at seminars designed for the exams (BeAnActuary 2011d). Also, many companies that employ actuaries have automatic pay raises or promotions when exams are passed. As a result, actuarial students have strong incentives for devoting adequate study time during off-work hours. A common rule of thumb for exam students is that, for the Society of Actuaries examinations, roughly 400 hours of study time are necessary for each four-hour exam (Sieger 1998). Thus, thousands of hours of study time should be anticipated over several years, assuming no failures (Feldblum 2001, p. 6).
Historically, the actuarial profession has been reluctant to specify the pass marks for its examinations (Muckart 2010, Prevosto 2000). To address concerns that there are pre-existing pass/fail quotas, a former Chairman of the Board of Examiners of the Institute and Faculty of Actuaries stated, "Although students find it hard to believe, the Board of Examiners does not have fail quotas to achieve. Accordingly pass rates are free to vary (and do). They are determined by the quality of the candidates sitting the examination and in particular how well prepared they are. Fitness to pass is the criterion, not whether you can achieve a mark in the top 40% of candidates sitting." (Muckart 2010). In 2000, the Casualty Actuarial Society (CAS) decided to start releasing pass marks for the exams it offers (Prevosto 2000). The CAS's policy is also not to grade to specific pass ratios; the CAS board affirmed in 2001 that "the CAS shall use no predetermined pass ratio as a guideline for setting the pass mark for any examination. If the CAS determines that 70% of all candidates have demonstrated sufficient grasp of the syllabus material, then those 70% should pass. Similarly, if the CAS determines that only 30% of all candidates have demonstrated sufficient grasp of the syllabus material, then only those 30% should pass."(CAS 2001).
Actuaries have appeared in works of fiction including literature, theater, television, and film. At times, they have been portrayed as "math-obsessed, socially disconnected individuals with shockingly bad comb-overs", which has resulted in a mixed response amongst actuaries themselves (Coleman 2003).
Early in the Empire, associations were formed for the purpose of meeting the funeral expenses of their members, whether the remains were to be buried or cremated, or for the purpose of building columbāria, or for both ... If the members had provided places for the disposal of their bodies after death, they now provided for the necessary funeral expenses by paying into the common fund weekly a small fixed sum, easily within the reach of the poorest of them. When a member died, a stated sum was drawn from the treasury for his funeral ... If the purpose of the society was the building of a columbārium, the cost was first determined and the sum total divided into what we should call shares (sortēs virīlēs), each member taking as many as he could afford and paying their value into the treasury.
The Commutation Functions are a computational device to ensure that net single premiums ... can all be obtained from a single table lookup. Historically, this idea has been very important in saving calculational labor when arriving at premium quotes. Even now ... company employees without quantitative training could calculate premiums in a spreadsheet format with the aid of a life table.
This danger could only be averted by placing their rates of insurance on a scientific basis, which should be the same and unalterable for all companies. ... After two or three interviews with Elizur Wright the presidents of the companies came to the conclusion that he was exactly the man that they wanted, and they commissioned him to draw up a revised set of tables and rates which could serve them for a uniform standard.
My task is now finished ... those who are here interred have received part of their honours already, and for the rest, their children will be brought up till manhood at the public expense: the state thus offers a valuable prize, as the garland of victory in this race of valour, for the reward both of those who have fallen and their survivors.
The actuarial credentialing and exam process usually requires passing a rigorous series of professional examinations, most often taking several years in total, before one can become recognized as a credentialed actuary. In some countries, such as Denmark, most study takes place in a university setting. In others, such as the U.S., most study takes place during employment through a series of examinations. In the UK, and countries based on its process, there is a hybrid university-exam structure.Actuarial science
Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries are professionals trained in this discipline. In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations.
Actuarial science includes a number of interrelated subjects, including mathematics, probability theory, statistics, finance, economics, and computer science. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes since the 1980s due to the proliferation of high speed computers and the union of stochastic actuarial models with modern financial theory (Frees 1990).
Many universities have undergraduate and graduate degree programs in actuarial science. In 2010, a study published by job search website CareerCast ranked actuary as the #1 job in the United States (Needleman 2010). The study used five key criteria to rank jobs: environment, income, employment outlook, physical demands, and stress. A similar study by U.S. News & World Report in 2006 included actuaries among the 25 Best Professions that it expects will be in great demand in the future (Nemko 2006).Alfred Watson (actuary)
Sir Alfred William Watson KCB FIA (11 March 1870 - 7 May 1936) was a British actuary and civil servant. In 1917 he became Britain's first Government Actuary and was very influential in setting up the funding via National Insurance for the newly introduced State Pension.American Academy of Actuaries
The American Academy of Actuaries, also known as the Academy, is the body that represents and unites United States actuaries in all practice areas. Established in 1965, the Academy serves as the profession’s voice on public policy and professionalism issues.Andrew Lamb (writer)
Andrew Martin Lamb (born 23 September 1942) is an English writer, music historian, lecturer and broadcaster, known for his expertise in light music and musical theatre. In addition to his musical work, Lamb maintained a full-time career as an actuary and investment manager.Bernard Benjamin
Bernard Benjamin (8 March 1910 – 15 May 2002) was a noted British health statistician, actuary and demographer. He was author or co-author of at least six books and over 100 papers in learned journals.
He was born in London and studied physics part-time at Sir John Cass College while working as an actuary for the London County Council pension fund, later moving to the public health section. Following wartime service as a statistician in the RAF he returned to the same civilian job and studied part-time for a PhD on the analysis of tuberculosis mortality. He was appointed Chief Statistician at the General Register Office in 1952, Director of Statistics at the Ministry of Health in 1963, then the first Director of the Intelligence Unit of the Greater London Council in 1966. In 1973, he became professor of actuarial science at City University, the first chair in actuarial science at an English university, where he designed the first undergraduate degree program in the subject in the country.
He was secretary-general of the International Union for the Scientific Study of Population from 1962 to 1963. He was president of the Institute of Actuaries from 1966 to 1968 and of the Royal Statistical Society from 1970 to 1972, and was awarded the highest honours of both bodies – the Gold Medal (1975) and the Guy Medal in Gold (1986), respectively.Clark Manning
Clark Preston Manning Jr., also known as Clark Manning or Clark Preston Manning, is an American actuary and business manager. He was President and CEO during 2002-2010 of Jackson National Life, a major U.S. insurance company located in Lansing, Michigan. He also served on the board of directors of Prudential plc, one of the largest public financial companies in the world, during 2002 - 2010. He currently is Chairman of the board of directors of PPM America, Inc., a major U.S. investment management firm that is another subsidiary of Prudential plc.
Manning was born in approximately 1959.He obtained a bachelor's degree (B.B.A.) in Actuarial Science at University of Texas. And also at University of Texas, he completed an M.B.A. He holds professional designations of Fellow of the Society of Actuaries (FSA) and Member, American Academy of Actuaries (MAAA). His activity in the Society of Actuaries included publishing a 1990 article on changes in valuation law, based on a panel discussion that he led.Manning worked as a consulting actuary in the Chicago office of Milliman & Robertson, Inc., before joining SunAmerica, Inc. In the mid-1990s, he was listed as Senior Vice President of NYC-based life insurance company SunAmerica, Inc.. SunAmerica, which also is described as a retirement savings company, was acquired by AIG in 1999. He served as senior vice president and as Chief Actuary.He joined Jackson National Life in 1995, served as the Senior Vice President and the chief actuary during 1995 to 1998, then served as Chief Operating Officer during 1998 to 2001. After serving as acting CEO from June 2001, he was appointed CEO of Jackson National Life in late 2001, saying then that he planned to follow "an aggressive strategy of expanding Jackson's distribution capabilities and product line." He served as CEO through 2010, in that year earning $2.1 million compensation. After stepping down from CEO of Jackson National Life in 2010, Manning was to serve as an adviser through the end of 2011. Tidjane Thiam, CEO of Prudential plc, praised Manning's for leaving at JNL "a strong legacy, having put together over the years a first-class management team and achieved excellent results...".Manning also was an analyst at Prudential Equity Group's Research Division (part of U.S.-based Prudential Financial and entirely unrelated to U.K.-based Prudential plc) at some point in his career.In 2015, he is a director and chairman of the board of directors of PPM America, Inc., a major investment management firm, which like Jackson National Life is a subsidiary of Prudential plc.Enrolled actuary
An enrolled actuary is an actuary enrolled by the Joint Board for the Enrollment of Actuaries under the Employee Retirement Income Security Act of 1974 (ERISA). Enrolled actuaries, under regulations of the Department of the Treasury and the Department of Labor, perform a variety of tasks with respect to pension plans in the United States under ERISA. As of August 2016, there were approximately 4,200 enrolled actuaries.George Barrett (actuary)
George Barrett (1752–1821) was a British actuary.Government Actuary's Department
The Government Actuary’s Department (GAD) is a department of the Government of the United Kingdom responsible for providing actuarial advice to public sector clients.
Its mission is to support effective decision-making and robust reporting within government as the first choice provider of actuarial and specialist analysis, advice and assurance.
The services GAD provides are:
Actuarial valuations and advice for public sector pension schemes including the pensions aspects of staff transfers;
Advice to the Government on occupational pension schemes, social security and on private pensions policy;
Advice on insurance, contingent liabilities and on the pricing and management of risk;
Other actuarial and modelling advice and assurance on areas including statistical analysis, healthcare financing and investment-related issues.Institute and Faculty of Actuaries
The Institute and Faculty of Actuaries is the professional body which represents and regulates actuaries in the United Kingdom.Institute of Actuaries of India
The Institute of Actuaries of India is the sole professional body of [actuary|actuaries] in India. It was formed in September 1944 by the conversion of the Actuarial Society of India into a body corporate by virtue of the Actuaries Act, 2006.List of fictional actuaries
Fictional actuaries and the appearance of actuaries in works of fiction have been the subject of a number of articles in actuarial journals.Office of the Chief Actuary
The Office of the Chief Actuary is a government agency that has responsibility for actuarial estimates regarding social welfare programs. In Canada, the Office of the Chief Actuary works with the Canada Pension Plan and the Old Age Security Program. In the United States, both the Social Security Administration and the Centers for Medicare and Medicaid Services have an Office of the Chief Actuary that deals with Social Security and Medicare, respectively. A similar agency in the United Kingdom is called the Government Actuary's Department (GAD).Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions (OSFI; French: Bureau du surintendant des institutions financières) is an independent agency of the Government of Canada reporting to the Minister of Finance created "to contribute to public confidence in the Canadian financial system". It is the sole regulator of banks, and the primary regulator of insurance companies, trust companies, loan companies and pension plans in Canada.
The current Superintendent is Jeremy Rudin, who was appointed in June 2014. He replaced Julie Dickson, who retired. The term of the appointment is seven years.Paul Daniels (rower)
Paul Daniels (born June 4, 1981 in Burlington, Wisconsin) is an American rower.
He studied at the University of Wisconsin and then in 2005 come to the UK to study an MSc Nature, Society & Env. Policy at St Anne's College in the University of Oxford. He is a former member of Oxford University Boat Club (rowing in the 2005 boat race) and St Anne’s Boat Club.
Daniels is an actuary working for Blenheim Capital Management. He has worked at Blenheim for some time and was previously an analyst at Blenheim.Stuart Richardson House
The Stuart Richardson House in Glen Ridge, Essex County, New Jersey, United States, was built for an actuary and his wife, who owned the house until 1970. It is the most complex of the Frank Lloyd Wright designed New Jersey residences.
The Richardson House, designed in 1941 and built a decade later, is set on a large suburban lot devoid of dramatic vistas. It is one of Wright's later "usonian" houses, which were designed to be functional homes for people of average means.
The Richardson House is a rare example of Frank Lloyd Wright's Usonian houses based on a hexagon unit module. An oasis in the middle of a suburban landscape of Glen Ridge, the house was constructed of red brick, cypress wood, red concrete mat and glass.
Like other Usonian houses, this one has no formal dining room. Usonian houses typically have grand living rooms flooded with light from floor-to-ceiling windows. This residence has 15 glass doors framing the living room.Wallace McCutcheon (politician)
Malcolm Wallace McCutcheon, (May 18, 1906 – January 23, 1969), known as Wallace McCutcheon, was a Canadian lawyer, actuary and politician.William Morgan (actuary)
William Morgan, FRS (26 May O.S. 1750 – 4 May 1833) was a British physician, physicist and statistician, who is considered the father of modern actuarial science.