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Generally, an actuarial analyst provides analysis of numerical data that may affect business decisions in the public and private sector. In most cases, the job duties of actuarial analysts relate to assessing risk probability and a resulting financial loss or gain. By calculating monetary systems such as pension contributions, risk values, or insurance premiums, actuarial analysts may determine the impact of investments and other financial products.
Career opportunities for actuarial analysts typically span a broad spectrum of industries. The most common opportunities are with insurance companies and financial institutions. Some may also have careers with large corporations, accounting firms, government agencies, and investment firms. Work as a consultant for companies that do not have an actuarial analyst on staff is another career opportunity.
The duties related to actuarial analysis may vary slightly depending on the industry, but typically follow standard actuarial concepts. Essentially, anyone who chooses an actuary career evaluates various risk scenarios and creates strategies for financial products such as pensions and insurance plans. To be successful in an actuarial career, a person is usually skilled in statistical methods and an expert at interpreting data. The data usually determines the rate for insurance premiums or other financial services such as bank accounts and investment administration.
While working for insurance companies, actuarial analysts may analyze insurance rates and the risk probability of offering certain types of polices. A person in this position may develop cost estimations for paying claims. He or she may also calculate the price of insurance products and determine which rate is appropriate for consumers based on risk factors. This could be for various types of insurance policies such as life, vehicle, business, and health. Additionally, an analyst may provide a forecast of the impact that a natural or man-made catastrophe could have on the insurance company.
A staff actuarial analyst with a corporation may assist senior management in making business decisions. If a corporation plans a merger or acquisition, actuarial analysts typically develop a forecast of the benefit of acquiring the new business. The actuarial analyst might also provide an analysis report on expanding existing operations in another region or country.
Duties within the government sector may vary based on the agency in which the actuarial analyst works. Typically, actuarial analysts are responsible for managing various government services such as retirement funds or health insurance. Within local government agencies, an actuarial analyst might oversee the financial stability of the employees’ retirement fund. Positions within regional government agencies generally include analyzing and forecasting trends in society. The actuarial analyst may look at the longevity of government programs that have broader implications.