Gather and Evaluate Statistical Data
In gathering and evaluating statistical data, the actuary’s first concern is to have a well managed source of data that is sufficient and reliable. An actuarial analyst may use external resources or models developed by other professional analysts aside from developing his own. As an actuary, his areas of consideration make use of his knowledge of macroeconomics which denotes a larger scope not only of the industry but of all factors that can affect the industry.
Using data mining tools, predictive models, business risk analysis, and other forms of technological advances, the insurance actuary collects data on accidents, retirement, disability, sickness, and mortality. The financial actuary on the other hand would consider using statistical data about lottery sales, unemployment, job growth, foreign exchange rates, and credit score analysis.
In being able to gather a large compilation of data, the actuary will also have a large collection of important variables in support of the models; he will use these as the bases for pricing recommendations, or terms and benefits, as well for remedies against the risk factors involved.