What type of services can actuarial firms provide?

Actuarial firms play a crucial role in analyzing financial risks, particularly in the context of insurance, pension plans, and other benefit programs. One of their primary functions is to study the differences between assumed and actual experience, which involves assessing how predicted outcomes compare to real-world results. This analysis helps organizations understand the effectiveness of their assumptions regarding mortality rates, interest rates, and other predictive factors impacting financial planning for benefits and insurance.

By examining these variances, actuarial firms can provide valuable insights that lead to adjustments in the financial strategies of organizations, ensuring that they remain solvent and can meet their long-term obligations to policyholders or beneficiaries. This critical service enables companies to manage risk effectively and aligns funding strategies with actual experience, thereby enhancing financial stability.

The other services mentioned, while related to benefits and financial planning, do not fully encapsulate the primary functions of actuarial firms in the same way. For instance, while legal advice and public fund management are important aspects of financial operations, they typically fall outside of the core actuarial services, which focus predominantly on risk assessment, statistical analysis, and forecasting.