Insurance 4 Insurance

While insurance policy pricing does seem random at best, it is really the result of a lot of hard work, careful analysis and number-crunching. This is the work that is performed daily by a relatively small group of little-known but highly trained insurance industry employees who wear the title of Actuary.

Actuaries perform actuarial analysis of insurance rates, rating procedures, rating plans and schedules of insurance companies.  They review and analyze insurance operations, reserves and underwriting procedures and provide technical assistance regarding actuarial matters to policy examiners and other technical staff.

An Actuary is responsible for analyzing the possible outcomes of the types of events that could potentially cause policyholders to make claims against their insurance policies. They study the overall likelihood that different events will occur, and they evaluate the potential risks each event poses. Their goal is to try and assess the costs associated with the event should it actually occur.

Insurance companies need to make sure that the money they are charging and collecting from policyholders is adequate to cover the costs of settling the claims that might potentially be made by policyholders as well as their other expenses. In fact, the work that Actuaries perform is crucial to an insurance company’s ability to remain in business. If policies are priced too low, there possibly won’t be adequate funds available to pay out all claims. If policies are priced too high, insurance companies risk losing business to those insurance companies offering less expensive policies.

Most actuaries are employed in the insurance industry, specializing in life and health insurance or property and casualty insurance. They produce probability tables which determine the likelihood that a potential future event will generate a claim. From these tables, they estimate the amount a company can expect to pay in claims. For example, property and casualty actuaries calculate the expected amount payable in claims resulting from automobile accidents, an amount that varies with the insured person’s age, sex, driving history, type of car, and other factors.

Actuaries may play a role in determining company policy and may need to explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public in general. They may testify before public agencies on proposed legislation affecting their businesses or explain changes in contract provisions to customers. They also may help companies develop plans to enter new lines of business or new geographic markets with existing lines of business by forecasting demand in competitive settings.

In fact, the work that Actuaries perform is crucial to an insurance company’s ability to remain in business. If policies are priced too low, there possibly won’t be adequate funds available to pay out all claims. If policies are priced too high, insurance companies risk losing business to those insurance companies offering less expensive policies.
Actuaries ensure that the price, or premium, charged for such insurance will enable the company to cover claims and other expenses. The premium must be profitable, yet competitive with other insurance companies. Within the life and health insurance fields, actuaries are helping to develop long-term-care insurance and annuity policies, the latter a growing investment tool for many individuals.

Actuaries have desk jobs, and their offices usually are comfortable and pleasant. They often work at least 40 hours a week. Some actuaries—particularly consulting actuaries—may travel to meet with clients. Consulting actuaries also may experience more erratic employment and be expected to work more than 40 hours per week.

To perform their duties effectively, actuaries must keep up with current economic and social trends and legislation, as well as with health, business, finance, and economic developments that could affect insurance or investment practices. Good communication and interpersonal skills also are important, particularly for prospective consulting actuaries.

If you’re good with numbers and you like to evaluate “what-if” scenarios, you might be a perfect candidate for an Actuary position.

While insurance policy pricing does seem random at best, it is really the result of a lot of hard work, careful analysis and number-crunching. This is the work that is performed daily by a relatively small group of little-known but highly trained insurance industry employees who wear the title of Actuary.

Actuaries perform actuarial analysis of insurance rates, rating procedures, rating plans and schedules of insurance companies.  They review and analyze insurance operations, reserves and underwriting procedures and provide technical assistance regarding actuarial matters to policy examiners and other technical staff.

An Actuary is responsible for analyzing the possible outcomes of the types of events that could potentially cause policyholders to make claims against their insurance policies. They study the overall likelihood that different events will occur, and they evaluate the potential risks each event poses. Their goal is to try and assess the costs associated with the event should it actually occur.

Insurance companies need to make sure that the money they are charging and collecting from policyholders is adequate to cover the costs of settling the claims that might potentially be made by policyholders as well as their other expenses. In fact, the work that Actuaries perform is crucial to an insurance company’s ability to remain in business. If policies are priced too low, there possibly won’t be adequate funds available to pay out all claims. If policies are priced too high, insurance companies risk losing business to those insurance companies offering less expensive policies.

Most actuaries are employed in the insurance industry, specializing in life and health insurance or property and casualty insurance. They produce probability tables which determine the likelihood that a potential future event will generate a claim. From these tables, they estimate the amount a company can expect to pay in claims. For example, property and casualty actuaries calculate the expected amount payable in claims resulting from automobile accidents, an amount that varies with the insured person’s age, sex, driving history, type of car, and other factors.

Actuaries may play a role in determining company policy and may need to explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public in general. They may testify before public agencies on proposed legislation affecting their businesses or explain changes in contract provisions to customers. They also may help companies develop plans to enter new lines of business or new geographic markets with existing lines of business by forecasting demand in competitive settings.

In fact, the work that Actuaries perform is crucial to an insurance company’s ability to remain in business. If policies are priced too low, there possibly won’t be adequate funds available to pay out all claims. If policies are priced too high, insurance companies risk losing business to those insurance companies offering less expensive policies.
Actuaries ensure that the price, or premium, charged for such insurance will enable the company to cover claims and other expenses. The premium must be profitable, yet competitive with other insurance companies. Within the life and health insurance fields, actuaries are helping to develop long-term-care insurance and annuity policies, the latter a growing investment tool for many individuals.

Actuaries have desk jobs, and their offices usually are comfortable and pleasant. They often work at least 40 hours a week. Some actuaries—particularly consulting actuaries—may travel to meet with clients. Consulting actuaries also may experience more erratic employment and be expected to work more than 40 hours per week.

To perform their duties effectively, actuaries must keep up with current economic and social trends and legislation, as well as with health, business, finance, and economic developments that could affect insurance or investment practices. Good communication and interpersonal skills also are important, particularly for prospective consulting actuaries.

If you’re good with numbers and you like to evaluate “what-if” scenarios, you might be a perfect candidate for an Actuary position.