“What does an actuary actually do?”

Could you briefly explain the responsibilities of an actuary?

In simple terms, an insurance actuary deals with highly complex issues of product design and risk management. For example, how high does a premium have to be set if we are to fulfil our commitments to customers?

What factors do you have to take into account?

There are many factors, ranging from interest rates, cost and cancellation risks to life expectancy, to name but a few. We use these factors in our calculation models. At the same time, however, we also assess the associated effects on our profitability and capital requirements.

Does the current level of interest rates present you with new challenges?

The interest rate level has always set the basic framework for actuarial challenges. Our responsibility is to deal with it properly and responsibly – and at VIG we do this with great care and expertise.

What education does an actuary need?

Actuaries generally have an education in mathematics, ideally actuarial mathematics. They must also have a number of skills that are very clearly defined for our profession. In the end, however, a good sense for reality and market developments is what makes a good actuary.