Highly trained insurance professionals who evaluate claims risk and determine, through careful analysis, the types of events that could potentially cause policyholders to file claims. They then assess the likelihood those events will occur, the costs that could occur from such claims, and the amount of money the insurance company would need to cover those costs and still remain profitable.
An actuary may work in the life, health or property/casualty insurance sector. He or she may be asked to testify at public hearings or court proceedings concerning rate increases, and may also help develop internal corporate policy.
The work an actuary performs is vital to the insurance company’s ability to remain in business. If they price policies too low, adequate funds may not be available to pay out all claims. If they price them too high, they risk losing the customer to another insurer with a more competitive offer.
Insurance companies rely heavily on the actuary and, once they have a good one, are rarely willing to let him or her go.