What is the main role of an insurance actuary?

The main role of an insurance actuary is to analyze statistical data and determine premiums and risks. Actuaries use mathematics, statistics, and financial theory to evaluate the likelihood of future events, which helps insurance companies set premium rates and ensure that they remain solvent. By assessing the risks associated with insuring individuals or events, actuaries play a critical role in the overall financial stability of an insurance company.

Understanding risk is vital for insurers, as it directly influences how much they charge for policies and how they manage their reserves. Actuaries create models that predict future claims based on demographic data, historical claims data, and market trends, allowing insurers to price their products competitively yet sustainably.

The other roles mentioned, such as selling insurance policies, educating consumers about insurance, and representing clients in disputes with insurers, are handled by different professionals like agents, brokers, and legal representatives. While these activities are important in the insurance industry, they do not encompass the specialized analytical functions that actuaries perform.