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Actuaries Assess The Financial Consequences Of Risk And Uncertainty. They Assess The Risk Of Potential Events Using Mathematics, Statistics, And Financial Theory, And They Assist Businesses And Clients In Developing Policies That Reduce The Cost Of That Risk. The Work Of Actuaries Is Critical To The Insurance Industry.
Actuaries' Responsibilities
Actuaries Typically Perform The Following Tasks:
- Compile Statistical Data And Other Information For Further Investigation.
- Calculate The Likelihood And Likely Economic Impact Of An Event Such As Death, Illness, An Accident, Or A Natural Disaster.
- Create, Test, And Manage Insurance Policies, Investments, Pension Plans, And Other Business Strategies To Reduce Risk And Maximise Profit.
- Create Charts, Tables, And Reports To Explain Calculations And Recommendations.
- Inform Company Executives, Government Officials, Shareholders, And Clients About Their Findings And Proposals.
The Majority Of Actuarial Work Is Done On Computers. Actuaries Compile Information Using Database Software. They Employ Advanced Statistics And Modelling Software To Forecast The Likelihood Of An Event Occurring, The Potential Costs Of The Event If It Occurs, And Whether The Insurance Company Has Sufficient Funds To Pay Future Claims.
Actuaries Typically Work In Teams With Managers And Professionals From Other Fields Such As Accounting, Underwriting, And Finance. Some Actuaries, For Example, Collaborate With Accountants And Financial Analysts To Determine The Price Of Security Offerings, Or With Market Research Analysts To Forecast Demand For New Products.
The Majority Of Actuaries Work For Insurance Companies, Where They Assist In The Design Of Policies And Determine The Premiums That Should Be Charged For Each Policy. They Must Ensure That Premiums Are Profitable While Remaining Competitive With Other Insurance Companies.
Actuaries In The Insurance Industry Typically Specialise In One Of The Following Areas Of Insurance:
By Predicting The Expected Costs Of Providing Care Under The Terms Of An Insurance Contract, Health Insurance Actuaries Assist In The Development Of Long-term Care And Health Insurance Policies. Their Forecasts Are Based On A Variety Of Factors, Such As Family History, Geographic Location, And Occupation.
Life Insurance Actuaries Assist In The Development Of Annuity And Life Insurance Policies For Individuals And Groups By Estimating How Long Someone Is Expected To Live Based On Risk Factors Such As Age, Gender, And Tobacco Use.
Property And Casualty Insurance Actuaries Assist In The Development Of Insurance Policies That Protect Policyholders From Property Loss And Liability Caused By Accidents, Natural Disasters, Fires, And Other Events. They Calculate The Expected Number Of Claims From Automobile Accidents, Which Varies Depending On The Insured Person's Age, Gender, Driving History, Car Type, And Other Factors.
Some Actuaries Use Their Knowledge Of Finance In Areas Other Than Insurance. For Example, They May Devise Investment Strategies To Manage Risks And Maximise Returns For Businesses Or Individuals.
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Pensions And Benefits At Retirement Actuaries Design, Test, And Evaluate Company Pension Plans To Determine Whether The Expected Funds Available In The Future Will Be Sufficient To Pay Future Benefits. They Are Required To Report The Findings Of Their Evaluations To The Federal Government. Pension Actuaries Also Assist Businesses In Developing Other Types Of Retirement Plans, Such As 401(k)s And Retiree Healthcare Plans. Individuals Can Also Get Retirement Planning Advice From Them.
Enterprise Risk Actuaries Identify Any Risks, Including Economic, Financial, And Geopolitical Risks That May Have An Impact On A Company's Short-term Or Long-term Goals. They Assist Top Executives In Determining How Much Risk The Company Is Willing To Take, And They Develop Strategies To Address These Issues.
Actuaries Also Work In Government. Actuaries In The Federal Government May Assess Proposed Changes To Social Security Or Medicare, Or They May Conduct Economic And Demographic Studies To Forecast Future Benefit Obligations. Actuaries May Examine And Regulate Insurance Company Rates At The State Level.
Some Actuaries Work As Consultants, Providing Clients With Advice On A Contract Basis. Many Consulting Actuaries Audit The Work Of Internal Actuaries At Insurance Companies Or Handle Actuarial Duties For Insurance Companies That Are Too Small To Retain Their Actuaries.
Work Environment
Around 27,700 People Work As Actuaries. The Following Companies Are The Largest Employers Of Actuaries:
| Insurance And Finance | 76% |
| Services In The Fields Of Professional, Scientific, And Technological Expertise | 13% |
| Company And Enterprise Management | 5% |
| Government | 4% |
| Self-employed | 2% |
Actuaries Typically Work In Teams With Managers And Professionals From Other Fields Such As Accounting, Underwriting, And Finance.
Although Most Actuaries Work In An Office, Those Who Work For Consulting Firms May Be Required To Travel To Meet With Clients.
Work Schedules For Actuaries
The Majority Of Actuaries Work Full-time, With Some Working More Than 40 Hours Per Week.
How To Become An Actuary?
Actuaries Must Have A Bachelor's Degree In Mathematics, Actuarial Science, Statistics, Or Another Analytical Field. To Become Certified Professionals, Students Must Complete Coursework In Economics, Applied Statistics, And Corporate Finance, As Well As Pass A Series Of Exams.
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Actuaries' Education
Actuaries Must Be Well-versed In Mathematics, Statistics, And Business. An Actuary Typically Has A Bachelor's Degree In Mathematics, Actuarial Science, Statistics, Or Another Analytical Field.
Students Must Complete Coursework In Economics, Statistics, And Corporate Finance To Become Certified Professionals.
To Prepare For A Career As An Actuary, Students Should Take Classes Outside Of Mathematics And Business. Computer Science Coursework, Particularly In Programming Languages, As Well As The Ability To Use And Develop Spreadsheets, Databases, And Statistical Analysis Tools, Are Advantageous.
Writing And Public Speaking Classes Will Help Students Improve Their Ability To Communicate In The Business World.
Actuarial Courses
Degree Courses:
- B.Sc. Actuarial Mathematics Science
- B.Com Statistics
- B.Sc Actuarial Science
- B.Com. In Actuarial Management
Masters Courses:
- MBA Finance
- MA In Statistics
Doctorate Course
- Ph.D.in Applied Mathematics
Top Colleges For Pursuing The Actuarial Courses
- Miranda House, Delhi
- Hindu College, Delhi
- National Institute Of Technology, Calicut
- Presidency College, Chennai
- St. Stephen's College, Delhi
- Loyola College, Chennai
- Shri Ram College Of Commerce, Delhi
- Lady Shri Ram College For Women, New Delhi
Actuaries' Licensing, Certification, And Registration
The Casualty Actuarial Society (CAS) And The Society Of Actuaries (SOA) Both Sponsor Programmes Leading To Full Professional Status. The CAS And SOA Provide Certification At Two Levels: Associate And Fellow.
The CAS Certifies Actuaries Who Work In Property And Casualty Insurance, Which Includes Auto, Homeowners, Medical Malpractice, And Workers' Compensation.
Actuaries Who Work In Life Insurance, Health Insurance, Retirement Benefits, Investments, And Finance Are Certified By The SOA.
Both Professional Societies Require Applicants To Have Completed Specific Educational Coursework In Economics, Finance, And Mathematical Statistics While Still In College. Applicants Must Also Pass Seven Exams To Obtain Associate-level Certification.
Before Graduation, Many Employers Expect Students To Have Passed At Least One Or Two Of The Initial Actuarial Exams Required For Professional Certification.
Furthermore, Both CAS And SOA Require Candidates To Attend Professional Seminars. Both Societies Require Candidates To Take E-learning Courses.
Because Each Exam Requires Hundreds Of Hours Of Study And Months Of Preparation, It Typically Takes An Actuary 4 To 7 Years To Earn The Associate-level Certification.
Actuaries Typically Take 2 To 3 Years After Becoming Associates To Achieve Fellowship Status.
Fellowship Certification Is Available From The SOA In Five Different Tracks: Life And Annuities, Group And Health Benefits, Retirement Benefits, Investments, And Finance/enterprise Risk Management. The CAS, Unlike The SOA, Does Not Provide Specialised Study Tracks For Fellowship Certification.
Both The CAS And The SOA Require Continuing Education. The Majority Of Actuaries Fulfil This Requirement By Attending Training Seminars Sponsored By Their Employers Or Societies.
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Other Actuarial Experience
Internships May Be Useful For Students Deciding Which Actuarial Track To Pursue Because There Are Various Types Of Practice Areas, Such As Health, Life, Pension, And Casualty.
Actuary Training
The Majority Of Entry-level Actuaries Begin As Trainees. They Are Usually Placed On Teams With More Experienced Actuaries Who Act As Mentors. They Begin By Performing Basic Tasks Such As Data Compilation, But As They Gain Experience, They May Conduct Research And Write Reports. Beginning Actuaries May Spend Time Working In Other Departments, Such As Marketing, Underwriting, And Product Development, To Learn About All Aspects Of The Company's Work And How Actuarial Work Fits Into Each.
Most Employers Assist Their Actuaries Throughout The Certification Process. Exams And Study Materials, For Example, Are Typically Paid For By Employers. Many Companies Offer Paid Study Time And Encourage Their Employees To Form Study Groups. Employees Typically Receive Raises Or Bonuses For Passing Each Exam.
Actuaries' Advancement
Advancement Is Primarily Determined By Job Performance And The Number Of Actuarial Exams Passed. Fellowship-level Actuaries, For Example, Frequently Supervise The Work Of Other Actuaries And Advise Senior Management. Actuaries With A Broad Understanding Of Risk Management And How It Applies To Business Can Advance To Executive Positions Such As Chief Risk Officer Or Chief Financial Officer In Their Organisations.
Important Characteristics Of Actuaries
Analytical Abilities- Actuaries Use Analytical Skills To Identify Patterns And Trends In Large Amounts Of Data To Determine The Factors That Influence Certain Types Of Events.
Communication Abilities- Actuaries Must Be Able To Explain Complex Technical Issues To Those Who Do Not Have An Actuarial Background. They Must Also Communicate Clearly In The Reports And Memos That Describe Their Work And Recommendations.
Knowledge Of Computers- Actuaries Must Be Familiar With Programming Languages And Be Able To Use And Create Spreadsheets, Databases, And Statistical Analysis Tools.
Interpersonal Abilities- Actuaries Serve As Leaders And Members Of Teams, So They Must Be Able To Listen To Other People's Opinions And Suggestions Before Coming To A Decision.
Math Abilities- Actuaries Use Calculus, Statistics, And Probability To Quantify Risk.
Problem-solving Abilities- Actuaries Identify Risks And Develop Strategies For Businesses To Manage Those Risks.
How Much Does An Actuary Make In India?
In India, The Average Actuary Salary Is INR 10.11 Lakh Per Year. Pay In This Field Ranges From INR 3.5 Lakh Per Year To INR 50 Lakh Per Year, Depending On A Variety Of Factors Such As Your Experience And Skills.
This Role's Bonuses Range From INR 20,000 To INR 4.6 Lakh Per Year, With Shared Profits Ranging From INR 15,000 To INR 1.96 Lakh Per Year. It Is Without A Doubt One Of The Most Lucrative Careers Available To Data Science And Mathematics Professionals.
Companies Rely On Actuaries To Evaluate Risks And Gain Insights To Make Better Decisions, Making Them One Of The Evergreen Professions. It Is One Of The Most Well-known Professions In The Financial Sector And Is Unquestionably A Rewarding Career Path To Take.
From Large Corporations To Financial Institutions, They All Seek Actuarial Professionals Who Can Assist Them In Making Better Decisions For Their Business Problems. If You Want A Highly Competitive Career With Plenty Of Room For Advancement, You Should Become An Actuary.
Job Outlook For An Actuary
Actuaries' Employment Is Expected To Grow 24 Per Cent Over The Next Ten Years, Much Faster Than The National Average For All Occupations.
On Average, 2,400 Actuarial Job Openings Are Expected Each Year Over The Next Decade. Many Of Those Openings Are Expected To Be Created As A Result Of The Need To Replace Workers Who Transfer To Different Occupations Or Leave The Labour Force For Other Reasons, Such As Retirement.
Actuaries In The Workforce
Actuaries Will Be Needed To Create, Price, And Evaluate A Wide Range Of Insurance Products, As Well As To Calculate The Costs Of New Risks.
More Actuaries Will Also Be Required To Assist Businesses In Risk Management, A Practice Known As Enterprise Risk Management. Actuaries Will Assist Businesses In Avoiding, Managing, And Responding To Potential Financial Risks In All Areas Of Business. This Analysis Assists Businesses In Adjusting Their Business Or Investment Strategies To Achieve Economic Returns And Respond To New Financial Regulations And Requirements.
Actuaries Will Be Needed By Insurance Companies To Analyse The Massive Amounts Of Information Collected From Consumers, Such As Medical Or Property Data. With More Data Available, Insurance Companies Will Be Able To Better Develop New Products, Set Competitive Prices, Predict Consumer Behaviour, And Make More Accurate Projections Of Future Risks And Costs.
Furthermore, Health Insurance Companies Will Require More Actuaries To Assist In Evaluating The Effects Of Changing Healthcare Regulations And Guidelines, Expanding Into New Insurance Markets, And Offering Products To New Customers.
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