What is an actuary's main responsibility in an insurance company?

An actuary's main responsibility in an insurance company revolves around calculating premium rates, which is essential for establishing the financial viability of insurance products. This process requires a deep understanding of statistics, mathematics, and financial theories to assess risk and determine the appropriate premiums that the company should charge.

Actuaries analyze various factors such as mortality rates, health trends, and accident statistics to predict the likelihood of future claims and ensure that the premiums are adequately set to cover those anticipated expenses while also contributing to the company’s profitability. This comprehensive analysis supports the insurance company in maintaining its reserves and guarantees security for policyholders.

The other roles mentioned, while important for the overall functioning of an insurance company, do not fall under the primary responsibilities of an actuary. Reviewing policy applications is typically handled by underwriters, managing customer service teams relates to operational management, and conducting marketing research is focused on understanding consumer behavior and market trends, which is separate from the risk assessment and financial modeling responsibilities of actuaries.