What role does an actuary play in loss statistics?

The role of an actuary in loss statistics is primarily centered around the calculation of loss reserves and analyzing risk data. Actuaries utilize mathematical and statistical methods to evaluate the financial implications of uncertain future events, particularly in the insurance industry. By calculating loss reserves, they estimate the amount of money that must be set aside to pay for future claims based on past loss data and trends, ensuring that an insurance company remains solvent and can cover its future obligations.

In addition to this, actuaries analyze risk data to help insurers understand the likelihood of various events occurring, such as accidents or natural disasters, which in turn helps in pricing insurance products appropriately. Their work is crucial in maintaining the financial health of insurance companies and in the overall management of risk. This expertise ensures that insurers can offer policies at rates that reflect the true level of risk while remaining profitable.

The other choices do not align with the specialized function of actuaries within the insurance industry. Handling customer complaints is typically managed by customer service representatives, selling insurance products is the role of agents or brokers, and governing insurance laws falls under the jurisdiction of regulatory bodies, rather than individual actuaries.