An actuary is an employee of an insurance company and that person or group of people have an important role in the health of the company providing coverage. The actuary will help the company understand risks and plan for the future. It’s on the actuary’s advice that some insurance companies take specific steps. For example, a particular company might offer flu shots at no charge. The goal is to have all employees get the shot so that there are fewer cases of the flu during flu season, fewer visits to the doctor and fewer medications purchased.

An actuary’s role in a self-insured program is even more important. In that case, the decision to withhold specific types of treatments are made based on the needs of the company. For example, a certain medication that is very expensive may not be covered by the plan in an effort to provide basic coverage for the masses.

As a consumer, you aren’t likely to deal directly with an actuary, but you have that person to thank for some of the details of your insurance policy. By watching trends in health insurance and health care, those specialists determine how to offer insurance without losing money - a must for even an insurance company to continue to operate.