Actuaries assess risk and manage finances, with most jobs in insurance companies. They also provide consulting services to businesses and individuals, work for corporations and universities, and help governments design public policy.
Actuaries are experts in risk assessment and financial management. They assess the likelihood of accidents or unfortunate circumstances, develop programs to reduce those odds, and decide how much money should be set aside to cover financial damages. Most actuarial jobs are found in insurance companies. Other professionals work for consulting firms, providing actuarial services to individuals or companies under contract. Actuarial jobs are also found in banks, large corporations, universities and government agencies.
Professionals working for insurance companies conduct research and analyze statistics to determine risks that people or businesses may face. They compare generalized statistics with a policyholder’s circumstances to decide how much to charge. An auto insurance actuary, for example, uses factors such as a person’s driving record, age, type of automobile, and location to determine policy rates. Insurance actuaries try to create policies that minimize potential payouts from insurance companies while providing customers with sufficient coverage in the event of an accident. Actuarial jobs are found in all areas of the insurance business, including property, casualty, health and life insurance companies.
Many actuaries provide consulting services to small businesses and individual clients. Most actuarial consulting jobs are found in private companies, although some qualified actuaries operate successful independent contract businesses. Consultants analyze financial records, workplace risks and sales data to help business owners create the most efficient pay scales and benefits packages. They design pension packages that will secure employees’ financial futures while keeping company costs low. A professional hired by a private citizen helps the person make smart investments and career planning changes.
Large corporations, investment banks, and private educational institutions often hire full-time actuaries to solve financial problems and advise executives on business decisions. Actuaries in companies assess the risks and rewards involved in potential mergers and acquisitions. Bank executives rely on actuaries to provide expert advice on creating new investment policies and client charts of accounts. Actuarial jobs at colleges and universities involve determining tuition and housing rates, creating payment plans, and securing the schools’ financial assets.
Local and federal governments hire actuaries to help design and implement public policy. Professionals determine how much money should be allocated to government programs such as community development projects, health care, and Social Security. They work closely with politicians, government officials, lobbyists and private citizens to create policies and programs that deliver the best possible benefits within a defined budget.
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