Actuarial models are mathematical tools used by actuaries to assess risk and uncertainty in various fields, particularly in insurance and finance. These models help predict future events, such as mortality rates or accident occurrences, by analyzing historical data and applying statistical methods. By using actuarial models, companies can set appropriate premiums, reserve funds, and make informed financial decisions. They often incorporate factors like age, health, and lifestyle to estimate potential costs and ensure that they remain financially stable while providing coverage to their clients.