An actuary’s job is to measure the level of financial risk insurers are exposed to when designing or adapting their insurance products. They’re also responsible for calculating reinsurance prices to cover claims in the event insurers have to be covered by other insurance companies. The role of an actuary is therefore about determining an insurance company’s level of exposure, i.e. their potential costs in the event of any losses.
The life of an actuary...
Technically designing insurance products
Actuaries are responsible for carrying out statistical, mathematical and financial research in order to define the guarantees and pricing structures that will apply to each risk category, as well as the terms of economic and financial profitability of contracts, and so on. They also create modelling tools, prospective simulation models and actuarial calculation tools, draft actuarial specifications for new products and play an active role in pricing up contracts, all based on expected levels of risk.
Underwriting and managing contracts
Actuaries are there to advise and provide technical support to the underwriters and sales representatives working at insurance companies. They’re also responsible for monitoring the general profitability of insurance products and contract portfolios, keeping a close eye on the news, given certain global events can have a big impact on risk assessments and quantification.
Required skills and profile
With technical backgrounds (ideally in mathematics, probabilities, statistics and IT), actuaries not only have to master the financial world, but also aspects of the legal, accounting, tax and commercial environments they work in.