Actuarial scientists use statistics to calculate and reduce risk for insurance companies, financial institutions, and government offices. They determine rates for insurance premiums, pension investment packages, and credit eligibility. Actuaries also analyze trends in demographic data to determine the likelihood of major events and advise on new policies and legislation.
An actuarial scientist works for or with insurance companies, financial institutions and government offices and uses statistics to calculate and reduce the risk of events and problems affecting a company or individuals. Forecasts calculated by an actuarial scientist are used to determine rates such as insurance premium costs, pension investment packages and criteria for credit eligibility. Actuarial scientists are required in most locations to obtain licensure through a series of exams administered by regional or national authorities.
Most actuarial scientists work for insurance companies and are the backbone of the insurance industry’s methods for determining premium rates and expected costs should a catastrophe occur. An actuarial scientist working for a health insurance company will analyze trends in demographic data to determine the likelihood of a major medical event, such as cancer or injury. Some occupations may be more prone to injury than others, so an actuarial scientist is responsible for determining whether the company should offer individuals on occupation insurance and at what cost. In addition to determining the risk of setting premium rates on an insurance company, an actuarial scientist also uses statistical modeling methods and data to help a company prepare new product packages and services to offer customers. Advice from an actuary is also often used to develop methods within a business to reduce the chance of undesirable events occurring, such as offering preventative medical care services as part of an insurance package to help reduce future types of claims. of medical assistance.
Actuaries also work for property-based insurance companies. They make similar calculations based on statistical averages and mathematical probability, past data, and current trends. An actuarial scientist employed by a property insurance company helps predict the chance and cost of claims if a catastrophe occurs in a specific region, such as an area prone to hurricanes or earthquakes.
In addition to working for insurance companies, there are actuarial scientists who are employed by financial institutions to determine rates and retirement plans. Government offices also employ actuaries to calculate the risk of government services and advise on new policies and legislation. Actuaries may work for a larger firm or an actuarial firm that provides consulting services to clients on a contract basis. Actuaries may occasionally be hired by lawyers to testify in court to help decide matters such as insurance claim damage payments or how much money to award in the event of a debilitating accident based on calculations of future earnings.
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