Editing Actuary (section)

===Traditional employment===
For both life and casualty actuaries, their classic role is calculating premiums and [[Insurance#Indemnification|reserves]] for insurance policies that cover various risks.{{sfn|Institute and Faculty of Actuaries|2014|pp=12–14}} On the casualty side, analysis often involves quantifying the probability of a loss event (called the frequency) and the size of that loss event (called the severity). The amount of time occurring before the loss event is important, because the insurer will only need to pay after the event has occurred. On the life side, analysis often involves quantifying the worth of a potential sum of money or a financial liability at different times in the future. Since neither of these analysis types is a purely deterministic process, [[stochastic models]] are often used to determine frequency and severity [[frequency distribution|distributions]], as well as the [[parameter]]s of these distributions. Forecasting interest yields and currency movements also plays a role in determining future costs, especially for life actuaries.{{sfn|Tolley|Hickman|Lew|2012}}

Actuaries do not always attempt to predict aggregate future events. Often their work relates to determining the cost of financial liabilities that have already occurred, called [[Retrocession (Insurance)|retrospective reinsurance]],{{sfn|Gillam|1991}} or the development or re-pricing of new products.{{sfn|Heeney|Probert|2002}}

Actuaries also design and maintain products and systems. They participate in financial reporting of companies' assets and liabilities. Actuaries must communicate complex concepts to clients who may not share their language or depth of knowledge. They work under a code of ethics that covers their communications and work products.{{sfn|ASB|2022}}