They are the experts from the field of economics, statistics, mathematics, risk assessment and management. Companies like insurance firms hire them to evaluate risk by advanced statistical and analytical skills.
Actuaries *manage risk with analytical skills* and help organizations plan for the future and protect themselves from loss. Actuaries *analyze the financial costs of risk and uncertainty.* They use mathematics, statistics, and financial theory to assess the risk of potential events, and they help businesses and clients develop policies that minimize the cost of that risk. Actuaries' work is essential to the insurance industry. Actuaries in the insurance industry typically specialize in a specific field of insurance, such as one of the following: Health insurance actuaries help develop long-term care and health insurance policies by predicting expected costs of providing care under the terms of an insurance contract. Their predictions are based on numerous factors, including family history, geographic location, and occupation. Life insurance actuaries help develop life insurance policies for individuals and groups by estimating, on the basis of risk factors such as age, gender, and tobacco use, how long someone is expected to live. Property and casualty insurance act uaries help develop insurance policies that insure policyholders against property loss and liability resulting from accidents, natural disasters, fires, and other events. They calculate the expected number of claims resulting from automobile accidents, which varies depending on the insured person’s age, sex, driving history, type of car, and other factors. Some actuaries apply their expertise to financial matters outside of the insurance industry. For example, they develop investment strategies that manage risks and maximize returns for companies or individuals. Some actuaries help companies develop broad policies and strategies that assess risks across all areas of business, a practice known as enterprise risk management. Pension and retirement benefits actuaries design, test, and evaluate company pension plans to determine if the expected funds available in the future will be enough to ensure payment of future benefits. They must report the results of their evaluations to the federal government. Pension actuaries also help businesses develop other types of retirement plans, such as 401(k)s, and healthcare plans for retirees. In addition, they provide retirement planning advice to individuals.