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One of the main functions of actuaries is to help businesses assess the risk of certain events occurring and to formulate policies that minimize the cost of that risk. For this reason, actuaries are essential to the insurance industry. Actuaries assemble and analyze data to estimate the probability and likely cost of the occurrence of an event such as death, sickness, injury, disability, or loss of property. Actuaries also address financial questions, including those involving the level of pension contributions required to produce a certain retirement income and the way in which a company should invest resources to maximize its return on investments in light of potential risk. Using their broad knowledge of statistics, finance, and business, actuaries help design insurance policies, pension plans, and other financial strategies in a manner which will help ensure that the plans are maintained on a sound financial basis.

Most actuaries are employed in the insurance industry, specializing in life and health insurance or property and casualty insurance. They produce probability tables which determine the likelihood that a potential future event will generate a claim. From these tables, they estimate the amount a company can expect to pay in claims. For example, property and casualty actuaries calculate the expected amount payable in claims resulting from automobile accidents, an amount that varies with the insured person's age, sex, driving history, type of car, and other factors. Actuaries ensure that the price, or premium, charged for such insurance will enable the company to cover claims and other expenses. The premium must be profitable, yet competitive with other insurance companies. Within the life and health insurance fields, actuaries are helping to develop long-term-care insurance and annuity policies, the latter a growing investment tool for many individuals.

Actuaries in other financial services industries manage credit and price corporate security offerings. They also devise new investment tools to help their firms compete with other financial services companies. Pension actuaries working under the provisions of the Employee Retirement Income Security Act (ERISA) of 1974 evaluate pension plans covered by that Act and report on the plans' financial soundness to participants, sponsors, and Federal regulators. Actuaries working in government help manage social programs such as Social Security and Medicare.

Actuaries may play a role in determining company policy and may need to explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public in general. 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 or new geographic markets with existing lines of business by forecasting demand in competitive settings.

Both staff actuaries employed by businesses and consulting actuaries provide advice to clients on a contract basis. The duties of most consulting actuaries are similar to those of other actuaries. For example, some may evaluate company pension plans by calculating the future value of employee and employer contributions and determining whether the amounts are sufficient to meet the future needs of retirees. Others help companies reduce their insurance costs by lowering the level of risk the companies assume. For instance, they may provide advice on how to lessen the risk of injury on the job, which will lower worker's compensation costs. Consulting actuaries sometimes testify in court regarding the value of the potential lifetime earnings of a person who is disabled or killed in an accident, the current value of future pension benefits (in divorce cases), or other values arrived at by complex calculations. Many consulting actuaries work in reinsurance, a field in which one insurance company arranges to share a large prospective liability policy with another insurance company in exchange for a percentage of the premium.

Task	Level of Importance	Frequency
Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.	4.53	Monthly or more (61.52%)
Testify before public agencies on proposed legislation affecting businesses.	4.27	Yearly or less (98.43%)
Analyze statistical information to estimate mortality, accident, sickness, disability, and retirement rates.	3.92	Weekly or more (42.65%)
Design, review and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.	3.80	Weekly or more (23.86%)
Collaborate with programmers, underwriters, accounts, claims experts, and senior management to help companies develop plans for new lines of business or improving existing business.	3.62	Yearly or more (35.60%)
Provide advice to clients on a contract basis, working as a consultant.	3.60	Monthly or more (33.22%)
Testify in court as expert witness or to provide legal evidence on matters such as the value of potential lifetime earnings of a person who is disabled or killed in an accident.	3.50	Yearly or more (73.37%)
Construct probability tables for events such as fires, natural disasters, and unemployment, based on analysis of statistical data and other pertinent information.	3.43	Yearly or more (54.33%)
Determine policy contract provisions for each type of insurance.	3.41	Yearly or more (44.01%)
Determine or help determine company policy, and explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public.	3.29	Yearly or more (41.98%)
Manage credit and help price corporate security offerings.	2.88	Weekly or more (52.55%)
Provide expertise to help financial institutions manage risks and maximize returns associated with investment products or credit offerings.	2.75	Yearly or less (65.08%)
Determine equitable basis for distributing surplus earnings under participating insurance and annuity contracts in mutual companies.	2.69	Yearly or more (64.67%)
Explain changes in contract provisions to customers.	2.61	Monthly or more (36.29%)

Importance Getting Information [ ? ]  4.59 Processing Information [ ? ]  4.59 Analyzing Data or Information [ ? ]  4.52 Interacting With Computers [ ? ]  4.42 Identifying Objects, Actions, and Events [ ? ]  4.40 Making Decisions and Solving Problems [ ? ]  4.38 Updating and Using Relevant Knowledge [ ? ]  4.04 Organizing, Planning, and Prioritizing Work [ ? ]  4.03 Documenting/Recording Information [ ? ]  3.93 Evaluating Information to Determine Compliance with Standards [ ? ]  3.89 Estimating the Quantifiable Characteristics of Products, Events, or Information [ ? ]  3.85 Interpreting the Meaning of Information for Others [ ? ]  3.83 Thinking Creatively [ ? ]  3.78 Communicating with Supervisors, Peers, or Subordinates [ ? ]  3.75 Developing Objectives and Strategies [ ? ]  3.62 Coordinating the Work and Activities of Others [ ? ]  3.49 Guiding, Directing, and Motivating Subordinates [ ? ]  3.40 Establishing and Maintaining Interpersonal Relationships [ ? ]  3.32 Coaching and Developing Others [ ? ]  3.25 Provide Consultation and Advice to Others [ ? ]  3.17 Training and Teaching Others [ ? ]  3.16 Judging the Qualities of Things, Services, or People [ ? ]  3.10 Communicating with Persons Outside Organization [ ? ]  3.06 Selling or Influencing Others [ ? ]  2.96 Monitor Processes, Materials, or Surroundings [ ? ]  2.87 Performing Administrative Activities [ ? ]  2.78 Developing and Building Teams [ ? ]  2.76 Scheduling Work and Activities [ ? ]  2.59 Monitoring and Controlling Resources [ ? ]  2.52 Resolving Conflicts and Negotiating with Others [ ? ]  2.37 Staffing Organizational Units [ ? ]  2.22 Assisting and Caring for Others [ ? ]  2.18 Controlling Machines and Processes [ ? ]  2.10 Inspecting Equipment, Structures, or Material [ ? ]  1.82 Repairing and Maintaining Electronic Equipment [ ? ]  1.57 Performing for or Working Directly with the Public [ ? ]  1.53 Repairing and Maintaining Mechanical Equipment [ ? ]  1.51 Performing General Physical Activities [ ? ]  1.32 Drafting, Laying Out, and Specifying Technical Devices, Parts, and Equipment [ ? ]  1.22 Handling and Moving Objects [ ? ]  1.20 Operating Vehicles, Mechanized Devices, or Equipment [ ? ]  1.11

Level Processing Information [ ? ]  6.21 Analyzing Data or Information [ ? ]  6.20 Updating and Using Relevant Knowledge [ ? ]  5.40 Thinking Creatively [ ? ]  5.37 Making Decisions and Solving Problems [ ? ]  5.35 Getting Information [ ? ]  5.17 Organizing, Planning, and Prioritizing Work [ ? ]  4.99 Identifying Objects, Actions, and Events [ ? ]  4.97 Estimating the Quantifiable Characteristics of Products, Events, or Information [ ? ]  4.92 Communicating with Supervisors, Peers, or Subordinates [ ? ]  4.76 Interacting With Computers [ ? ]  4.63 Developing Objectives and Strategies [ ? ]  4.62 Establishing and Maintaining Interpersonal Relationships [ ? ]  4.58 Evaluating Information to Determine Compliance with Standards [ ? ]  4.54 Provide Consultation and Advice to Others [ ? ]  4.42 Coordinating the Work and Activities of Others [ ? ]  4.15 Coaching and Developing Others [ ? ]  4.13 Judging the Qualities of Things, Services, or People [ ? ]  4.09 Guiding, Directing, and Motivating Subordinates [ ? ]  4.06 Interpreting the Meaning of Information for Others [ ? ]  4.01 Documenting/Recording Information [ ? ]  3.67 Training and Teaching Others [ ? ]  3.67 Communicating with Persons Outside Organization [ ? ]  3.48 Scheduling Work and Activities [ ? ]  3.47 Resolving Conflicts and Negotiating with Others [ ? ]  3.40 Monitor Processes, Materials, or Surroundings [ ? ]  3.37 Selling or Influencing Others [ ? ]  3.16 Developing and Building Teams [ ? ]  3.04 Monitoring and Controlling Resources [ ? ]  2.84 Performing Administrative Activities [ ? ]  2.71 Staffing Organizational Units [ ? ]  2.12 Assisting and Caring for Others [ ? ]  1.87 Controlling Machines and Processes [ ? ]  1.57 Inspecting Equipment, Structures, or Material [ ? ]  1.54 Repairing and Maintaining Mechanical Equipment [ ? ]  1.32 Repairing and Maintaining Electronic Equipment [ ? ]  1.01 Performing for or Working Directly with the Public [ ? ]  0.86 Performing General Physical Activities [ ? ]  0.58 Handling and Moving Objects [ ? ]  0.54 Drafting, Laying Out, and Specifying Technical Devices, Parts, and Equipment [ ? ]  0.37 Operating Vehicles, Mechanized Devices, or Equipment [ ? ]  0.22