Which professional is primarily responsible for calculating insurance premiums based on risk?

The professional primarily responsible for calculating insurance premiums based on risk is the actuary. Actuaries use statistical methods and financial theories to assess the likelihood of future events, such as the probability of claims occurring. They analyze various data points, including historical claims data, current market trends, and other factors that influence risk.

By accurately assessing risk, actuaries provide critical information that insurance companies use to set premiums to ensure they are sufficient to cover potential claims while remaining competitive in the market. Their expertise in mathematics and statistics allows them to create models that predict future liabilities, thus directly influencing how premiums are determined.

While underwriters also evaluate risk and decide whether to accept an application for insurance, their focus is more on individual applicants and specific policies rather than the broader statistical analysis needed for premium calculation. Brokers and agents typically facilitate the sale of insurance products, acting as intermediaries between clients and insurance companies without directly calculating the risk or premiums.