01. What is Actuarial Science
Actuarial Science is a fairly unique blend of Mathematics, Economics, and Real world Business understanding, all designed to give an understanding of sound practical ways in which Financial risk can be managed.
Actuaries are multi-skilled strategic thinkers, trained in the theory and application of Mathematics, Statistics, Economics, Probability and Finance. They have been called Financial architects and social mathematicians, because their unique combinations of analytical and business skills are used to address a growing variety of financial and social challenges worldwide.
The future is full of uncertainty. Some of the events those can happen are undesirable. "Risk" is the possibility that an undesirable event will occur.
Actuaries are experts in:
- Evaluating the likelihood of future events,
- Designing creative ways to reduce the likelihood of undesirable events,
- Decreasing the impact of undesirable events that do occur
Actuaries are trained to provide a range of variable services like:
- Analyse and manage financial and related risk.
- Construct financial modeling frameworks to suit particular circumstances.
- Provide analyses which takes into account changes in interest rates, inflation, investment returns and unanticipated events.
- Communicate complex analyses in an easily understood form for senior decision-makers in management, legislation and regulation.
- Provide financial advice to facilitate secure long term decisions.
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02. Reasons to consider being an Actuary
- A highly competitive salary and excellent benefits.
- A career with superior job security through Economic cycles.
- A career with many opportunities those will provide you with skills those are transferable across multiple industries.
- A career that you control because advancement is merit-based.
- A career that is dynamic and challenging.
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03. Skills and Talents needed for an Actuarial Career
Some skills are needed to be an Actuary:
- Specialized Math knowledge (Calculus, Statistics, Probability).
- Keen Analytical, Project Management and Problem solving skills.
- Good Business sense (Finance, Accounting, Economics).
- Solid Computer skills (Word processing programs, Spread sheets, Statistical analysis programs, Data base manipulation, Programming languages).
Some talents are needed to be an Actuary:
- Self-motivation
- Creativity
- Independence
- Ability to work with others
- Ambition
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04. Career Opportunities
Actuaries and Public Policy
Actuaries take their responsibilities to the public and recognise that their unique blend of skills can be enormously beneficial. Through their national associations, actuaries provide voluntary assistance to national and regional governments, analysing legislative and regulatory proposals, advising on social trends and suggesting solutions to a wide range of social critical problems. Through the International Actuarial Association (IAA), actuaries are offering support to international regulatory, financial, accounting and public assistance organizations. The actuarial profession is a fast-growing one with opportunities of opening up throughout the globe.
Actuaries provide professional services in a wide range of business and social contexts such as :
Life Insurance
Actuaries have long been recognized for their expertise in managing the solvency of life insurance companies. For decades, governments around the world have accorded actuaries statutory authority to certify that life insurance companies have sufficient resources to meet their obligations to policyholders.
Health Insurance
Actuaries assist health insurers worldwide to meet their financial obligations despite ever-increasing costs of medical care and accelerating demands for coverage. They are particularly well-equipped to help insurers address the health care needs for the elderly and the chronically ill in a financially responsible way.
General Insurance
Actuaries are deeply involved in the increasingly complex general insurance business, particularly in the areas of pricing analysis, establishing the level of claims reserves and structuring reinsurance programs. Increasingly, actuaries are using sophisticated modeling techniques to help general insurers plan for and address natural disasters and effects of climatic changes.
Employee Retirement and Benefit Plans
Actuaries bring their skills in statistics, mathematical analysis, probabilities and finance to assist employers and governments in providing financial security for the elderly and the retired. Actuaries make recommendations on the adequacy of funding levels for pension plans and provide statutory certifications to support pension and benefit plan legislation in countries around the world.
Investment and Finance Services
As the financial services industry becomes increasingly complex and international in focus, actuarial practice is rapidly expanding in new and diverse industries. Actuaries work in funds management and provide advice on interest performance measurement and asset allocation as well as quantitative modeling. Brokerage firms increasingly use actuaries as analysts. In banking, actuaries analyse mortgage portfolios and lending risks, project investment returns, various future-based model scenarios. Additionally, actuaries help to design investment products that incorporate insurance elements, applying skills in analysis of contingent risk and financial analysis.
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