What is the main function of actuaries in the insurance field?

Actuaries play a crucial role in the insurance industry by analyzing risk and calculating premiums. Their primary function involves the use of mathematical and statistical methods to assess the likelihood of events occurring, such as accidents, illnesses, or natural disasters, and determine the financial impact these events could have on an insurance provider.

Through sophisticated modeling and analysis, actuaries can predict future incidents and help establish insurance prices that are both competitive and reflective of the risk involved. This ensures that the insurance company can cover claims while maintaining profitability. Their expertise directly influences the financial stability of the insurance organization and helps in the creation of policies that are fair and sustainable.

In contrast, the roles of setting marketing strategies, managing customer service, and administering claims are handled by other specialized professionals within the insurance sector. These roles focus on customer relations, claims processing, and promoting products, rather than the mathematical and analytical assessment of risk that defines the work of actuaries.