An actuary uses mathematics and statistics to estimate the financial impact of uncertainty and help clients minimize risk. An actuary can assess and manage the risks of financial investments, insurance policies and other potentially risky businesses. An insurance actuary analyzes financial risk. They use mathematical, statistical and financial models to determine the probability of something happening.
Their analysis helps insurance companies design insurance policies: actuaries work at all insurance companies and are responsible for helping them assess financial risk and calculate premium costs. For example, an actuary who works for a home insurance company can predict how much money an insurance company would have to pay in the event of damage to homes caused by wildfires. In this field, actuaries are involved in all stages of product development, pricing, risk assessment and product marketing. Actuaries use their experience in finance and statistics to assess risk in the insurance, finance and other industries.
Actuaries normally work in insurance companies and consultancies and, in some cases, may also work in general insurance. Healthcare actuaries with five or more years of experience are generally eligible for management positions, requiring them to delegate tasks to teams of employees and report to high-level management. This promotional work is an example of how health actuaries address the needs of insurance companies and health insurance consumers by advising public health policymakers on matters related to care coverage. Insurance companies hire actuaries to work in reinsurance and brokerage operations, as well as to assist them in their financial management; this is done by analyzing statistics on the severity and frequency of claims to help insurance companies invest wisely and ensure that they maximize revenues and payments.
possible complaints. In addition to earning a bachelor's or master's degree in one of the fields mentioned above, most employers seek to hire healthcare actuaries who have previous experience working in accounting, health informatics, and health industries regulated by the state or federal government. Life insurance actuaries help develop life insurance and annuity policies for individuals and groups by estimating, based on risk factors such as age, sex and tobacco use, how long a person is expected to live. When creating policies, actuaries analyze the risk of insuring different groups of people based on their lifestyle, health, where they live and several other factors.
Many insurance companies hire potential actuaries directly from school, either in dropout programs or internship programs. Actuarial skills to work in personal finance planning, damages and medical care have been recognized, as well as in some more traditional areas, such as pensions, insurance and investment. Insurance companies rely on actuaries to determine the risk of life, property, liability, auto, home and other insurance plans. The Arizona State University School of Mathematics and Statistics also offers a bachelor's degree in actuarial science.
In addition to making financial estimates based on data, healthcare actuaries design health care plans and identify the reasons for the increase in costs for health insurance consumers. Other credentials offered through SOA include Chartered Enterprise Risk Analyst (CERA) and a member of the Society of Actuaries (FSA). .