The actuarial consultant is a cornerstone of risk management. They play a crucial role across a whole raft of industries – especially sectors such as insurance and finance.
Despite this, not many people still don’t fully understand what actuarial consultants actually do.
Whether you’re a business owner, trustee or finance executive, gaining insight into their work is vital for your decision-making.
What is an actuarial consultant?
An actuarial consultant is a highly trained professional who applies mathematics, statistics and financial theory to assess risk and predict future outcomes.
Unlike in-house actuaries, actuarial consultants work independently or for specialist firms, advising a variety of clients rather than just one employer.
These professionals are particularly valuable in complex financial environments – such as insurance, pension funds, and corporate finance. In these sectors, understanding long-term liabilities and risk exposure is critical.
What does an actuarial consultant do?
Ultimately, actuarial consultants have the ability to turn raw data into strategic advice that helps clients make informed, forward-thinking decisions.
Financial modelling and forecasting
Actuarial consultants create sophisticated financial models to project outcomes based on different assumptions.
This might include predicting future insurance claims, pension fund liabilities, or long-term investment returns.
Risk assessment and management
One of the most important responsibilities of an actuarial consultant is identifying and quantifying risk.
They assess factors that could impact a company’s financial health – such as changes in interest rates, mortality trends or regulatory shifts – and offer strategies to manage those risks effectively.
Pensions
In Canada, actuarial consultants play a crucial role in the design, funding and ongoing evaluation of both defined benefit and defined contribution pension plans.
They help employers and trustees with plan valuations, funding strategies and regulatory filings in accordance with provincial and federal pension legislation.
Their expertise ensures that pension obligations are sustainable and that stakeholders can make informed decisions about future benefits.
Insurance pricing and product development
In insurance, actuarial consultants help design and price products based on predicted claims, customer behaviour and market conditions.
This ensures premiums are both competitive and sufficient to cover future payouts. They also analyze claims trends and assist with reserve calculations.
Regulatory reporting and compliance
Actuarial consultants play a key role in helping organisations meet their regulatory obligations.
This includes obligations with respect to financial reporting, compliance with accounting standards, or aligning with prudential requirements.
Actuarial advice ensures that your financial statements and disclosures are accurate.
Looking for an actuarial consultant?
If you’re facing complex financial decisions or require expert guidance on risk, engaging a trusted actuarial consultant can make all the difference.
Axxima’s experienced actuarial team offers tailored advice to help you navigate risk and make smarter financial choices.
Contact the team at Axxima today to learn how their team of professionals can support your business with insight, clarity, and confidence.
