In general, an actuarial analyst analyzes numerical data that may have an impact on business decisions in both the public and private sectors. Actuarial analysts’ primary responsibilities are to assess risk probability and the resulting financial loss or gain. Actuarial analysts can determine the impact of investments and other financial products calculating monetary systems such as pension contributions, risk values, or insurance premiums.
Actuarial analyst jobs typically cover a wide range of industries. Insurance companies and financial institutions are the most common employers. Large corporations, accounting firms, government agencies, and investment firms may all employ some of them. Another option is to work as a consultant for companies that do not have an actuarial analyst on staff.
Depending on the industry, actuarial analysis responsibilities may differ slightly, but they generally follow standard actuarial concepts. In essence, anyone who pursues a career as an actuary evaluates various risk scenarios and develops strategies for financial products such as pensions and insurance plans. To be successful in the field of actuarial science, one must be knowledgeable in statistical methods and adept at interpreting data. The rate for insurance premiums or other financial services such as bank accounts and investment administration is usually determined the data.
Actuarial analysts may analyze insurance rates and the risk probability of offering certain types of policies while working for insurance companies. Someone in this position could come up with cost estimates for paying claims. He or she can also figure out how much insurance products cost and which rate is best for customers based on risk factors. This could apply to a variety of insurance policies, including life, auto, business, and health. A forecast of the impact of a natural or man-made disaster on the insurance company may also be provided an analyst.
A corporation’s staff actuarial analyst may assist senior management in making business decisions. Actuarial analysts typically develop a forecast of the benefit of acquiring a new business when a company plans a merger or acquisition. The actuarial analyst may also provide a report on the feasibility of expanding existing operations to another region or country.
The actuarial analyst’s responsibilities in the government sector may differ depending on the agency where he or she works. Actuarial analysts are typically in charge of managing government services such as retirement funds and health insurance. An actuarial analyst in a local government agency might be in charge of the financial stability of the employees’ retirement fund. The majority of jobs in regional government agencies entail analyzing and forecasting societal trends. The actuarial analyst may investigate the long-term viability of government programs with far-reaching consequences.