Actuary

Overview and Key Facts

What Do They Do?

An actuary could...

Overview Listen to this section

Life is full of risks to both people and property. Actuaries predict the chances that future negative events will occur in a person's life, and then think of ways to reduce those chances, or reduce the impact of those negative events. Actuaries help bring peace of mind to both families and to businesses.

Do You Have the Skills and Characteristics of an Actuary?

1. Judgment and Decision Making: ? Considering the relative costs and benefits of potential actions to choose the most appropriate one.
2. Critical Thinking: ? Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.
3. Mathematics: ? Using mathematics to solve problems.
4. Reading Comprehension: ? Understanding written sentences and paragraphs in work related documents.
5. Active Listening: ? Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.

6. Complex Problem Solving: ? Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.
7. Systems Evaluation: ? Identifying measures or indicators of system performance and the actions needed to improve or correct performance, relative to the goals of the system.
8. Systems Analysis: ? Determining how a system should work and how changes in conditions, operations, and the environment will affect outcomes.
9. Speaking: ? Talking to others to convey information effectively.
10. Writing: ? Communicating effectively in writing as appropriate for the needs of the audience.

Core Tasks

Think about if you'd like the typical tasks an Actuary might do:

• Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.
• Design, review, and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
• Determine, or help determine, company policy, and explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public.
• Provide advice to clients on a contract basis, working as a consultant.
• Analyze statistical information to estimate mortality, accident, sickness, disability, and retirement rates.
• Construct probability tables for events such as fires, natural disasters, and unemployment, based on analysis of statistical data and other pertinent information.
• Negotiate terms and conditions of reinsurance with other companies.
• Collaborate with programmers, underwriters, accounts, claims experts, and senior management to help companies develop plans for new lines of business or improvements to existing business.
• Determine equitable basis for distributing surplus earnings under participating insurance and annuity contracts in mutual companies.
• Testify before public agencies on proposed legislation affecting businesses.
• Determine policy contract provisions for each type of insurance.
• Testify in court as expert witness or to provide legal evidence on matters such as the value of potential lifetime earnings of a person disabled or killed in an accident.