What role do actuaries play in insurance?

Actuaries play a crucial role in the insurance industry by analyzing risk and setting premiums based on statistical data. Their primary function involves evaluating the likelihood of events occurring and quantifying the financial impact those events could have on an insurance company. This analysis involves using mathematical and statistical methods to assess risk, which enables insurers to establish appropriate pricing for their policies.

By integrating various data sources and sophisticated models, actuaries help determine how much premium should be charged to cover potential claims and ensure that the insurance company remains financially viable. Their work is essential in ensuring that insurance products are priced correctly, allowing for adequate coverage while also maintaining the company's profitability.

The other options describe roles that do not accurately reflect the specific functions of actuaries. Customer service inquiries, processing claims, and selling policies are tasks typically associated with customer service representatives, claims adjusters, and insurance agents, respectively, rather than actuaries.