What Does An Actuary Do?

An actuary is a person that is strong when it comes to mathematics, statistics, calculus, finance, economics and other subjects that are inline with business.  With skills in dealing with risk, the function of an actuary in insurance companies, financial service industries and other businesses is needed. With that in mind, what does an actuary do?

The job of actuary is to analyze data to forecast the likelihood of a certain event and the financial impact of it to the company. If the probability is identified, the actuary manages the risk then turns it into business.  For those reasons, can actuary can help make insurance policies, set pension and health plans, and derive strategies that will help companies prosper and reduce risk.

In the insurance industry, an actuary ensures that the insurance company can cover claims and other expenses to the policyholders if undesirable events happened. At the same time, the insurance experts have to make sure that the premiums they offer is profitable and can compete with other insurance companies.

Moreover, actuaries in other businesses may help companies in planning to become more competitive in their area. They also give advice on how to lessen companies’ expenses, and set standards for pension and health plans. In working with the government, they help administer social programs.

Actuaries work in the office. According to the Bureau of Labor Statistics, most of them usually work 40 hours per week. However, answer the question of "what does an actuary do?" is not simple. They have to come up with practical or creative approach to make improvements, and solve critical problems in the business.  This means that the day to day tasks of an actuary may vary a lot.