What does "actuarial science" study in relation to insurance?

The study of actuarial science in relation to insurance primarily focuses on the calculation of risks and premiums. Actuarial science employs mathematical and statistical methods to assess the likelihood of future events, such as accidents, illnesses, and natural disasters, and quantifies the financial implications of those events. By analyzing historical data and trends, actuaries can determine appropriate premiums that need to be charged to policyholders to cover potential claims while also ensuring the profitability of the insurance company. This process is vital for maintaining the financial stability of insurers and ensuring they can meet their obligations to claimants.

The other options do not reflect the core function of actuarial science. While the development of new insurance technologies, customer service processes, and the investigation of fraud are indeed important aspects of the insurance industry, they fall outside the primary focus of actuarial science, which is centered on risk assessment and premium setting.