We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Does an Investment Actuary Do?

By K. Reynolds
Updated Mar 03, 2024
Our promise to you
Practical Adult Insights is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Practical Adult Insights, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An investment actuary is a financial professional who is responsible for analyzing various business risks and interpreting the negative effects these risks can have on the financial health of a company. Typically, investment actuaries operate within the insurance industry and will combine mathematical analysis and statistics with demographic data in order to determine the financial risk of insurance products, such as life insurance and retirement pension plans. Upon completing a risk analysis, investment actuaries will create strategic solutions to minimize risk and maximize growth. In addition to analyzing risk, an investment actuary is also responsible for determining the financial stability of companies that generate a large portion of their revenue through investment income.

Within the insurance industry, the main role of an investment actuary is to oversee and manage the investment risk strategies of multiple companies. There are a multitude of government regulations that require insurance companies to maintain a conservative investment strategy over a long-term investment horizon. To accomplish this, an experienced investment actuary will advise insurance companies on how to implement strategies that minimize risk and maximize the returns of their investment portfolio.

Investment actuaries also play a major role in the life insurance sector, as they are responsible for evaluating the risk associated with a portfolio of life insurance policies. If an insurance company has too many life insurance policies that become payable in a short period of time, it can cause financial ruin and insolvency. It is because of this inherent risk that investment actuaries analyze the policies that have been underwritten by an insurance company and determine a course of action to minimize the risk associated with them.

Risk associated with retirement benefits can also cause financial strain to a company over the long term. In order to minimize these risks, an investment actuary will evaluate the financial feasibility of the company maintaining a pension benefit plan and create strategies that will assist the company in ensuring that it is able to continue payments to its beneficiaries. These strategies could include making changes to the asset allocations of the pension plan or eliminating the plan altogether.

The services of an investment actuary are also used by government agencies on occasion. Generally, an investment actuary will analyze the financial risk associated with government bonds being issued by a local government or municipality. In this role, the investment actuary would analyze risk and make recommendations regarding the type of bonds that should be offered as well as the amount that should be issued.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.