Insurance is an industry that revolves around risk, which actuaries help to assess and manage. You may be wondering what does an actuary do that their work impacts the insurance industry so much. Depending on their skill and experience level, they may be involved with any of these three processes. 

Data Management

Actuaries are experts at data management. They take data about lifestyles, behavior, and other influencing factors, and look for trends and patterns. They also organize the information and verify its accuracy so that it can be applied to decisions. 

Risk Assessment

While actuaries work in a  variety of fields, their skills have traditionally been used to assess risk in insurance and financial markets. Because they are able to detect patterns, they can evaluate the risk of a specific event happening in the future. When specific data points are missing or there are large gaps in the available information, it can be difficult to make an accurate assessment. 

Predictive Analysis

At higher levels, actuaries use statistics and computer science to make predictions about future trends and how to adapt business decisions to meet them. In the insurance industry, this is largely centered around ensuring investments are adequate to meet payout needs for anticipated claims while also sustaining business operations.

Actuaries play a vital role in ensuring insurance companies have the resources to support their operations. They do this by collecting, managing, and analyzing data to predict likely future events.