What does an actuary do in the insurance field?

An actuary plays a critical role in the insurance industry by analyzing financial risks using statistical methods. This involves assessing the likelihood of various events occurring, evaluating potential outcomes, and determining the financial implications associated with those events. Actuaries utilize complex mathematical models and statistical analysis to help insurance companies set premiums, reserve adequate funds for potential claims, and ensure overall financial stability.

Their work is essential for making informed decisions about pricing, policy design, and risk management strategies. By quantifying risks and providing insights based on data, actuaries contribute significantly to the formulation of the insurance products that companies offer, ensuring they adequately cover risks while remaining profitable. This analytical expertise is fundamental in maintaining the balance between providing affordable coverage for clients and ensuring the insurer's financial viability.