The Institute and Faculty of Actuaries has partnered with the Scottish Financial Risk Academy to further actuarial science.
The two organisations have launched the Actuarial Research Centre which will create more scholarship opportunities to bring more talented PhD students into the industry.
The ARC has launched with two sponsored PhD students and a third joining in 2013. It is expected that the ARC will sponsor six PhD students by 2014.
David Hare, president elect of the Institute and Faculty of Actuaries, said: "The Institute and Faculty of Actuaries have provided substantial funding to bring the ARC to life because it is vital that we have a centre of excellence that produces valuable research that can benefit not only the actuarial profession, but also the businesses that actuaries work within both in the UK and also internationally.
"Co-sponsorship of PhDs will allow businesses to engage in long-term research projects that would be difficult to resource in-house. This "win win" situation should ensure that research undertaken at the ARC will help to shape future business strategies."
The ARC was announced at a reception at the Scottish Parliament yesterday evening. Attendees included Mark McDonald MSP and Derek Mackay MSP, minister for local government and planning.
He added the ARC has been designed to work in partnership with companies.
Professor Andrew Cairns at Heriot Watt University and first Director of the ARC, said it would add value to businesses, the public, governments and policy makers.
"Students will work on boundary-pushing research with practical applications," he said.
"The ARC will achieve this by providing sponsorships to support PhD students from a variety of relevant backgrounds whose research will focus on a range of topics that are of importance to the actuarial profession and to the financial services industry."
All research will be published in the public domain.
