The Role of The Actuary in Assessing Financial Risks: a Case Study of Iraqi Insurance Companies

Abstract

Objective: This study aims to examine the role of actuaries in assessing financial risks in insurance companies, their roles in applying financial risk assessment methods, and the authority granted to them for comprehensive risk assessment. Indeed, some companies may impede actuaries from performing their duties effectively by limiting their authority, causing obstacles and inability to perform their duties. Thus, the main objective of this paper is to assess to what extent actuaries could manage financial risk in insurance companies in spite of all the challenges and difficulties that they face.
 
 Methods: The study objectives are achieved by using data collected from a questionnaire distributed to employees of Iraqi insurance companies. A total of 165 forms were distributed, and 150 of them were retrieved and validated for statistical analysis.
 
 Results: The findings reveal a strong positive association between actuary’s dimensions and the dimensions of the financial risk assessment. This relationship reduces investment risks and enhances pricing and estimation processes.
 
 Conclusion: The positive association between all the actuary’s dimensions and the dimensions of the financial risk assessment highlights the active and essential role of actuaries in assessing both internal and external risks.