Kathmandu. Insurance is the “invisible protective shield” that protects the insured. The actuarial profession is a very important and sensitive profession related to insurance. Actuaries with basic knowledge of mathematics, statistics, economics, and finance are the financial creators of the future.
They don’t just play with numbers; They use numbers to build a stable, reliable model that can withstand risk and uncertainty. Actuaries should be partly trusted advisors, partly also predictors.
They are responsible for carefully analyzing historical data to predict future events. That’s why their work is so important.
Actuaries ensure that insurance companies are able to fulfill their promises to the insured, even in the face of most adverse conditions. Actuaries work in a variety of fields. Their contribution is not only in life and non-life insurance but also in retirement funds, mutual funds, health care, finance technology and banking services.
When we talk about climate change or climate change, insurers are busy talking about how such weather changes can affect property insurance claims. They begin to assess the potential risks.
When the public health field discusses or researches new diseases or epidemics or new medical devices, actuaries begin to analyze pricing models to cover the economic damage of epidemics, the costs to be paid for prevention, and the risk of damage that may occur when new medical equipment breaks down.
Their study is not just about mathematical formulas; The focus is on understanding the human element of risk and how to protect it.
Insurers working in nonlife insurance ensure the financial stability of insurance companies through core functions: reservation, pricing, and risk management.
Reserve funds are important when actuaries calculate insurance liability. The company must securely set aside a certain amount of premium income to pay potential future claims. This includes the analysis of historical claims data and projections about future events, such as natural disasters or an increase in motor accidents.
Insurers also design and price insurance plans at a reasonable price for customers, ensuring adequate risk protection to pay claims, and bear the company’s expenses.
Actuaries assess the risks for new products. Assesses the risk of major catastrophes, works closely with management to protect the company’s sustainability and fulfill promises made to the insured.
Insurance companies include actuaries in their strategic decisions. This gives confidence to shareholders and insurers alike. Actuaries put forward some different and in-depth analyses, which help the board of directors and top management to analyze more clearly, manage risks wisely, and make sense of unforeseen future events.
Globally, actuaries are involved in the analysis of emerging risks such as disaster modeling, cybersecurity, reinsurance strategies, sustainability and climate modeling. This profession now combines predictive analytics by creating complex formats to predict and prepare for the future.
