Who monitors and analyzes the financial risk to help an insurer remain solvent?

The role of an actuary is particularly crucial in the insurance industry as it involves applying mathematical and statistical methods to assess financial risks. Actuaries analyze trends and create financial models that help insurers project future claims, set premiums, and ensure that the insurer can meet its future policyholder obligations. This analysis is vital for maintaining the solvency of an insurance company, as it enables the organization to manage its financial risk effectively.

In contrast, an underwriter primarily assesses the risk of insuring a particular individual or entity and makes decisions about coverage and pricing based on that assessment. A risk manager focuses on identifying and mitigating risks to the organization's assets and earnings. A claims adjuster, on the other hand, investigates and evaluates claims made by policyholders, ensuring that payouts are fair based on the terms of the policy, but does not typically involve themselves in analyzing financial risk from a solvency perspective. Thus, the actuary's role is specifically tailored to the monitoring and analysis of financial risk within an insurance framework.