Florida Health Insurance Terms:
"What is Actuary?"

Actuary: An individual employed by an insurance company to calculate premium rates, reserves, dividends and other important figures using risk factors obtained from experience tables.

Actuaries deal with risk. They decide how likely things such as death, sickness, injury, disability, and loss of property are to occur, as well as the costs of these things.

Actuaries also decide how much money it will take in order to get a certain amount of retirement income. They help design insurance policies and pension plans and try to make sure that they are sound. Actuaries may need to explain their findings to company executives, government officials, and the public. They may also testify in court as an expert.

Most actuaries work for insurance companies. Some work in life and health insurance. Others work in property and casualty insurance. Actuaries make tables that show how likely it is that a claim will be made by a customer. They use these tables to decide how much the company will have to pay in claims. They make sure that the company charges enough to pay these claims. This amount must be enough for the company to make a profit. It must also be in line with what other insurance companies are charging.

Actuaries work in offices. They often work at least 40 hours a week. Some actuaries may travel to meet with clients.