What is the role of an insurance actuary?

An insurance actuary is a professional who works with insurance companies to calculate risks and determine the cost of insurance premiums for policyholders. An actuary uses mathematics, statistics, and economics to assess the probability of an insurance-related event happening in the future. This information is used to help insurance companies set rates to cover the costs associated with claims and policyholders’ premiums. In Maryland, insurance companies are required by the Maryland Division of Insurance to have their actuarial calculations reviewed by an independent actuary. The independent actuary has a duty to ensure the calculations are done accurately and objectively. This helps to shield the insurance company from potential liabilities related to overcharging customers. The insurance actuary also has a large role in evaluating and managing investments made by the insurer. By using data from sources such as stocks, bonds, and mutual funds, an actuary can help an insurer make informed decisions about the best investments for their portfolio. Finally, in addition to these duties, an insurance actuary is also typically responsible for monitoring compliance with state and federal insurance regulations. This includes performing audits and filing the necessary paperwork to stay in compliance. This helps to protect policyholders by ensuring that the insurer is following all applicable rules and regulations.

Related FAQs

What are the risks of self-insuring?
What is the process for making a claim on an insurance policy?
How do insurance regulations vary by state?
What is the difference between a surety bond and an insurance policy?
How are insurance premiums calculated?
What is insurance law?
How do insurance companies investigate fraud?
What are the legal requirements for an insurance claim?
What rights do insurance policyholders have?
What type of coverage is included in auto insurance policies?

What is the role of an insurance actuary?

Related FAQs

Related Blog Posts