The actuarial profession offers several possible job opportunities, many of which are in the insurance business. Actuaries are trained to use mathematical models to assess and predict risk. The resulting data is used to determine insurance premiums that are realistic for customers yet will still allow the insurance company to make a profit. Most actuaries specialize in a certain area such as life insurance, property-casualty insurance, health insurance or automobile insurance. Other actuary jobs are within the financial sector, with actuaries in this field advising corporate management teams on areas such as investing and retirement plans.
Health actuaries work with health insurance companies to determine the most beneficial policies to set in place. Health insurance brokers then use these policies as benchmarks for how likely potential customers are to present the company with a loss in the future. A risk factor is assigned to each health insurance client based on current health and the statistical chances of the client developing a serious illness such as cancer. Lifestyle and family history of disease are two factors used to calculate how high this risk might be for different individuals. Life actuaries use similar data to make longer-term projections of each client's lifespan, adding in risk statistics such as smoking or other unhealthy behaviors.
The actuarial profession also determines the likeliness of accidents as well as illness. Property-casualty actuaries' input helps create insurance plans for residential and commercial properties based on current building conditions and appraised value. Auto actuaries calculate how many possible accidents a driver is likely to have over a certain time frame, based on factors such as age, prior driving history and vehicle type. These factors give the auto insurance broker a picture of how much the company might have to pay out in case of a particular driver having a collision.
Large corporations with shareholders often turn to the actuarial profession when making financial decisions. This sector of the actuary profession closely examines data from current stock market conditions as well as from the market performance of the company consulting with an actuary. Financial actuaries then advise the company's executive management of which investments might be beneficial and which might be more risky. Others in the actuarial profession also work with companies to develop employee retirement plans that meet current regulations and provide adequate pensions. Governments also might employ retirement plan actuaries to make future projections for government-sponsored retirement programs and elderly care programs.
