What is the primary function of an actuary in the insurance industry?

The primary function of an actuary in the insurance industry is to analyze financial risks. Actuaries utilize mathematical, statistical, and financial theories to assess the likelihood of uncertain future events, which is essential for the insurance industry to set appropriate premiums and ensure financial stability. Their work involves evaluating data, modeling potential risk scenarios, and using this information to help insurance companies make informed decisions about the products they offer and the appropriate pricing structures. By effectively understanding and quantifying risk, actuaries play a crucial role in helping insurers maintain profitability while also ensuring they can meet future claims.