Who is an Actuary?
An actuary is a person who evaluates the risks for future financial loss and plans budget according to the statistical data. For this, an actuarial scientist uses the knowledge of mathematics, statistics, economics, and probability principles.
What does an Actuary do?
Analyze past data and information to cover the financial loss in the future.
Predict future accidents and economic loss.
Provide detailed information to the government officials, company executives, etc.
Plan business strategies, insurance policies, pension policies, investments to minimize future risks.
Design technical reports with calculations and proposals.
Actuaries usually work in an office setting in a large group. They often work under trained professionals or managers.
Some of them work in a consulting firm that requires traveling to different places to obtain relevant data. While others, work on a contract basis.
Types of Actuaries
Life Insurance Actuary: They predict a person’s term of life. They use the individual’s daily life habits, diet and analyze the same.
Health Insurance Actuary: They consult with healthcare professionals such as doctors, medical staff to provide solutions regarding health insurance, critical illness, etc.
General Insurance Actuary: They deal with the insurance of material needs such as property, car, assets, etc.
Pension Actuaries: They deal with issues in the field of pension such as developing pension schemes, helping the needy family with issuing their pensions, etc.
Risk Actuaries: They work for a business organization and work for a company to increase productivity and maximize profit.
Resource and Environment Actuaries: They work to find a solution for global environmental issues and maintain the ecological balance of the planet. They help to predict future environmental hazards and their solution.
Mathematics: Knowledge of statistics, geometry, calculus, probability, etc.
Accounting: Knowledge of the financial market and its principles.
English language: Basic structure of English language and grammar.
Electronics: Knowledge of electronic and circuit boards, chips, etc.
Computer: Knowledge of computer hardware, programming, and applications.
Law: Knowledge of legal rules, court procedures, agency rules, etc.
Analytical Problem Solving Skills: Analyzing the data to look for the factors responsible for unfavorable outcomes and minimizing the risks.
Decision-making skills: Knowing about the cost and benefits of each measure and choosing the best one out of many alternatives.
Communication and Interpersonal skills: Communicating and sharing reports with colleagues, technical experts, government officials to discuss future outcomes.
Scientific software such as IBM SPSS Statistics, SAS, etc.
Data Entry Software, Microsoft Access, Microsoft Visual Basic, etc.
Development software such as C++, Java, etc.
Mathematical Reasoning: Ability to solve mathematical problems in a short period.
Inductive Reasoning: Ability to use pieces of information to form the technical report.
Near Vision: Ability to identify the minute details and come up with a solution.
Investigative: Actuaries are curious and inquisitive people
Conventional: Calm headed and pay attention to the details
Have a high concentration ability
Ability to sort multiple priorities
Most of the jobs of actuaries ask for a minimum Bachelor’s degree in Actuarial Science, while others accept a candidate who doesn’t have a degree of the same.Masters in actuarial science is an added advantage.
Actuarial science is still unknown as a profession in many parts of India. There are very few openings for a post of an actuary. The average salary of an actuary in India is Rs. 731,000 per annum.
Frequently Asked Questions
1. How do I choose my university course to become an actuary?
It is always an advantage for the students who have a Bachelor’s degree in Actuarial Science. But any numerate degree will work for the job of an actuary.
2. What are the related subjects I have to study to become an actuary?
To become an actuary you should have adequate knowledge in the fields of mathematics, statistics, accounting, business studies, and economics.
3. Is actuary a good career?
An actuary is a good career due to the following reasons:
Good work-life balance
Well paid salary
Low job stress level
High job satisfaction
Good working conditions
4. What kind of math do actuaries use?
Actuaries mostly use probability and statistics to predict the future outcomes of an underlying issue.
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