What does an Actuary do?
Answer:
Actuaries are professionals who analyze the financial consequences of risk using statistics, mathematics, and financial theory.


These professionals often work in the insurance industry where they help design the insurance plans, determine insurance premiums, monitor company profit, recommend corrective action, make sure enough funds are set aside to pay claims, and even recommend investments that the insurance company should place their assets in.

Actuaries evaluate the likelihood of future events, design ways to reduce the chance of these events taking place, and decrease the impact of these events when they do occur.

For example, an actuary may look at data regarding the potential for a hurricane strike in a particular area. If looking at Florida, chances are higher for hurricane damage than Idaho. The actuary can’t prevent hurricanes from making landfall in Florida but he can reduce the insurance company’s financial risk by recommending higher premiums for homeowners in coastal Florida communities. In addition, the actuary in this example might look at ways that Florida homeowners might reduce their risks and offer discounts for those who have installed storm shutters.
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