Why actuary is important?

Actuaries predict insurance companies' costs and then help them set premiums and design policies based on those numbers.

actuaries

may specialize in a particular type of insurance, such as life insurance, health insurance, auto insurance, or liability insurance. Within each business, you'll find contracts and policies of some kind. A very important duty of an actuary is to review company policies and contracts.

Actuaries also review annuity plans, insurance policies, pension plans, and various contracts. Its purpose in examining and reviewing these documents is to determine the risk factors for each contract and to help the company establish guidelines that are beneficial and pose less risk to employees. Actuaries are often asked to collect new statistical data to assess the risks of insurance policies or about situations that may be present and that were not present in the past. While actuaries analyze financial risks based on statistical data, the data is not always the same and adjustments must be made.

Actuaries help solve an increasingly uncertain future and help both companies and governments combat problems ranging from the global recession to climate change. This will allow you to learn the reality of the trade while studying for your IFOA (Institute and Faculty of Actuaries) exams. Actuaries may work in accounting firms or financial institutions, but they generally work for insurance companies. Experienced actuaries who value their freedom often work as independent consultants who help companies of all shapes and sizes meet the changing challenges of an uncertain future.

Actuaries are often called upon to testify as expert witnesses in lawsuits related to financial or insurance risks in general. Actuaries often work together with statisticians, mathematicians or accountants and rely on their data to develop statistical models. With the economy growing as it has lately, actuaries are increasingly in demand, according to the U. This is an important step in acquiring the skills and experience needed to be an independent actuarial consultant.

While many of the functions of an actuary involve collecting and analyzing data, actuaries also spend the same amount of time communicating their findings to different managers in a company or to different businesses. Actuaries who work with insurance companies can be asked to testify in government cases where federal or state legislatures are trying to create new laws on insurance companies.