What role do actuaries play in insurance companies?

Actuaries are critical to the functioning of insurance companies as they specialize in analyzing statistical data to assess risk and set premium pricing. Their work involves using mathematical and statistical methods to evaluate the likelihood of future events, such as accidents or natural disasters, which directly influences how much a company charges policyholders.

By assessing risk, actuaries help insurance companies ensure they have sufficient funds to pay claims while remaining financially viable. Their expertise is essential in determining the likelihood of claims being made and helping to establish appropriate premiums that are competitive but also reflective of the potential risks covered. This makes option B the correct choice, as it accurately describes the primary role of actuaries in the insurance industry.

Other roles mentioned, such as determining coverage terms for health policies, managing claims, or creating marketing strategies, are typically handled by various other professionals within the insurance company, highlighting the specific and crucial function that actuaries fulfill in risk assessment and financial forecasting.