Actuaries and risk management in insurance business

The insurance sector has a significant socioeconomic function making inroads into the interiors of the economy. Its success depends on prediction of risk by envisioning the uncertainties of future. Hence, it requires statistical and mathematical models to assess and manage risks. The task of assessment of risk depends on accurate identification of factors which determine the destiny of insurance business. An actuary, by profession, is an expert in actuarial science and proficient in financial security systems, and deals effectively with a focus on complex financial evaluation in cases of unforeseeable events to curb losses. These professionals are viewed as creators of insurance business and their importance can be witnessed designing and managing life and non-life insurance, pension plans, retirement benefits, unemployment insurance, etc. through their modelling skills in evaluating and projecting the risks involved in futuristic uncertain events. The present work studies the role of actuaries for sustainable development of insurance business.