They may testify before public agencies on proposed legislation affecting their businesses or explain changes in contract provisions to customers. They also may help companies develop plans to enter new lines of business. Most actuaries are employed in the insurance industry, in which they estimate the amount a company will pay in claims. Actuaries ensure that the price, or premium, charged for such insurance will enable the company to cover claims and other expenses. This premium must be profitable and yet competitive with other insurance companies.
Actuaries employed in other industries perform several different functions.
The small but growing group of actuaries in the financial services industry, for example, manages credit and helps price corporate security offerings. Because banks now offer their customers investment products such as annuities and asset management services, actuaries increasingly help financial institutions manage the substantial risks associated with these products. In addition to salaried actuaries, numerous consulting actuaries provide advice to clients on a contract basis. Their clients include insurance companies, corporations, health maintenance organizations, health care providers, government agencies, and attorneys. The duties of most consulting actuaries are similar to those of other actuaries.