Definition: An actuary is responsible for closely analyzing the risk and costs associated with different scenarios and undertaking a systematic approach to resolving those issues.
The Actuary’s role is the analysis of financial events, such as the effects of taxes and economic conditions. The role involves creating forecasts of total future costs or profits of an organization and analyzing these against alternative scenarios of occurrence. This is done with the aid of statistical models, economic theory, modeling software, and other sources of information. Actuaries usually have advanced degrees in mathematics, statistics, business administration, or other similar fields.
A firm or organization hires an actuary to analyze the current information and make recommendations about minimizing corporate losses and profit losses.
To become an actuary, you must take courses in math and statistics at colleges or universities. Most actuaries study under professors specializing in actuarial science, actuarial economics, or clinical insurance.
The Actuarial profession includes a wide variety of different jobs with three major components: actuarial data processing, applying mathematical principles to analyze the effects of risk factors, and valuation techniques to project future financial results.
Actuaries are employed by insurance companies and are responsible for modeling the financial health of their clients. In actuarial terms, a company’s claim review process is geared towards protecting its clients and keeping them whole if something goes wrong. Actuaries calculate premiums based on various factors, including economic conditions such as inflation and actuarial estimations and analyses.
The responsibilities of an actuarial include establishing and maintaining accurate records of past claims and research methodologies used to determine future claims
The benefits of becoming an actuarial actuary include high demand, high pay, and a rewarding career. In addition, the career can be rewarding because of what it teaches one to think critically and analytically.
Actuaries are employed by many organizations ranging from large corporations to small companies that rely heavily on actuarial analysis to write insurance policies for their clients. Actuaries normally work for insurance companies, financial institutions, government agencies, and many other industries with a risk appetite. They typically are hired to help companies save money by anticipating or preventing financial losses before any actual event, such as a hurricane or terror attack.