What is the role of the actuary in the insurance industry?

The primary role of an actuary in the insurance industry is to calculate risks and premiums. Actuaries use mathematics, statistics, and financial theory to analyze the financial costs of risk and uncertainty. By assessing statistical data, they can determine the likelihood of events occurring, which in turn allows insurance companies to set premiums that are both competitive and capable of covering future claims.

Actuaries play a critical role in ensuring that insurance products are priced appropriately, reflecting the true risk associated with providing coverage. They analyze various factors such as historical loss data, market trends, and demographic information to develop models that predict future claims. This data-driven approach ensures the solvency and profitability of insurance companies while also maintaining fair pricing for consumers.

Other roles mentioned, such as assessing customer service quality, marketing insurance products, and selling insurance policies, are important but do not reflect the core functions that define what actuaries do within the industry. Instead, these tasks are typically handled by different professionals within an insurance organization.