What is one of the main functions of an actuary?

An actuary primarily uses mathematical techniques to analyze and solve business problems, particularly in the field of insurance. This role involves employing statistical methods, financial theories, and complex calculations to assess risk and uncertainty, which are fundamental to pricing insurance products and ensuring that an insurer remains solvent. Actuaries interpret data to inform decisions about premiums, reserves, and financial forecasting, making their skills crucial for the sustainability and strategic planning of insurance companies.

Other functions mentioned, such as managing investment portfolios, developing new insurance products, or negotiating claim settlements, while important, do not encapsulate the core role of an actuary. Instead, those tasks are typically the purview of other professionals within an insurance organization, such as investment managers, product developers, or claims adjusters. Therefore, the primary function of the actuary aligns with their expertise in applying mathematical analysis to address business challenges in the insurance industry.