What can Actuaries do for Society ?
In the insurance sector, actuaries help ensure that insurance companies remain solvent, the industry remains robust, and can meet its obligations to policyholders. A robust insurance sector leads to financial stability, encouraging investment and entrepreneurship by providing a safety net for businesses and individuals. Financial stability also builds consumer confidence, driving further economic development from retail activities and further increasing the personal safety net.
Actuaries also play a crucial role in designing and managing pension plans, which are essential for the financial security of retirees. By accurately forecasting future liabilities and investment returns, actuaries help ensure the long-term sustainability of pension funds; this is important for social stability and reduces the dependence on the State to take care of retirees.
Furthermore, actuaries are involved in investment management, helping to allocate capital efficiently and manage financial risks. This can contribute to the development of capital markets and the overall economic growth of a country. Moreover, with their knowledge and skills in projecting uncertain liabilities, they can help entities match the duration of their assets to their liabilities, ensuring the entities remain solvent over the long term and are able to meet future payments as they become due.
More and more, actuaries are playing significant roles in data driven industries. Many companies such as Uber, Amazon, and Tesla have chosen to put actuaries at the head of their analytical teams, as they recognize that the skills they possess can help them harness the power of the data they collect to serve their customers better and become more efficient and profitable in their operations.
Overall, actuaries’ expertise in risk management, financial forecasting and data analytics can contribute to the stability and growth of a country’s economy, making actuaries valuable contributors to national development.