Through their knowledge of statistics, finance, and business, actuaries assess the risk of events occurring and help create policies for businesses and clients that minimize the cost of that risk. For this reason, actuaries are essential to the insurance industry.

Why do companies need actuaries?

An actuary essentially acts as the backbone of financial security for insurance and reinsurance companies, multinational corporations, and financial planners. The primary job of an actuary is to analyze risk. ... Their role is to assess compiled data by applying complex statistical tools and to quantify financial risk.

What is the role of actuaries?

An actuary is a professional who specialises in the field of analysing financial risks by implementing statistical, financial and mathematical theories. In insurance, actuaries aid in assessing risks which help companies in the estimation of premiums for their policies.