What key role do actuaries play in the insurance industry?

Actuaries are crucial to the insurance industry because they focus on assessing risks and determining appropriate premium rates. Their expertise lies in using mathematical and statistical methods to analyze data, which helps them understand the likelihood of certain events occurring, such as accidents, illnesses, or natural disasters. By calculating these risks, actuaries can set premiums at levels that ensure the company can cover future claims while also remaining profitable. They provide essential insights into policy pricing, reserve setting, and strategic planning within insurance firms, making their role vital for the sustainability of the industry.