Actuarial Science is a profession where Actuaries use their mathematics and statistics skills to understand, assess and solve problems related to the financial impact of risk and uncertainty in the business, thereby help us take informed decisions which will lead to the least probability of financial losses.
An Actuary’s Role
- Investment and Financial Services
- Life Insurance
- Health Insurance
- General Insurance
- Employee Retirement and Benefit Plans
One has to clear 15 subjects in the actuarial science exam conducted by IAI or IFoA. The exams are globally recognized.
The study course is divided into four stages:
Core Technical Stage:
Consists of 9 subjects each with one paper of 100 marks (CT1 to CT9) and all are compulsory.
Core Application Stage:
Consists of 2 compulsory subjects (CA 1 to CA3). CA1 consists of two papers whereas CA2 and CA3 shall have one paper each.
Specialist Technical Stage:
Consists of 6 papers ( ST1 to ST6) and the students would required to choose any two.
Specialist Application Stage:
Consist of 6 papers (SA1 to SA6) and the student has to clear anyone.
Institute of Actuaries of India
Those who plan to enroll as student members of IAI, ACET – “Actuarial Common Entrance Test” is the Gateway to the world of Actuary. The only eligibility criterion is that the student must have passed secondary level examination or an equivalent examination with English and Mathematics subjects at secondary level.
Institute and Faculty of Actuaries
Those who have scored a minimum 85% in class XII Mathematics or 55% marks in graduation (Mathematics or Statistics) or 55% marks in MBA Finance are straight away eligible for the membership of the institute.
However, if students fail the above criterion then he/she is required to clear a non membership examination (CT-1) to be eligible for a membership.
Institute and Faculty of Actuaries
Partly qualified actuaries who have at least cleared 3-4 papers are in high demand, with starting salaries ranging from 3.5 lakh per annum. The salary increments are based on both experience and exams passed. The increment can be quite large. Even if a student passes one actuarial exam he/she gets 10% - 20% salary increment in his/her annual salary.
Part super-hero. Part fortune-teller. Part trusted advisor.
We manage risk.
It’s what we do. With unbeatable analytical skills, we help organizations plan for the future and protect themselves from loss. By understanding the very nature of risk, we play a key role in the psychological, physical, and financial stability of society. With our help, businesses can grow, retirees can invest with confidence, and people can enjoy peace of mind.
We love what we do.
. It only makes sense that ours is a top-ranked job. After all, we earn high incomes in low-stress environments. We enjoy a harmonious work/life balance. Our work is intellectually stimulating. And we work in a variety of settings. But no matter where we work, this career comes with one great perk: the satisfaction of solving problems and having an impact.
We are the backbone of financial security.
Insurance companies, financial planners, and many multinational corporations are hesitant to make certain moves without consulting us first. That’s because the problems we solve provide a safeguard against catastrophe and this gives them the confidence to grow. And that benefits everyone.
We manage risk.
The future is uncertain and full of risk. Risk is the chance that an undesirable event will occur, but risk is also opportunity. That’s where we come in.
Actuaries are experts in:
- Evaluating the likelihood of future events—using numbers, not crystal balls.
- Designing creative ways to reduce the likelihood of undesirable events.
- Decreasing the impact of undesirable events that do occur.
We are the leading professionals in finding ways to manage risk. It takes a combination of strong analytical skills, business knowledge, and understanding of human behaviour to manage today’s complex risks facing our society.
We’re key players on the management team of companies that deal with risk. In a fast-changing world, with emerging risks and the need for more creative ways to tackle them, there are constant opportunities for personal and professional growth.
We are the analytical backbone of our society’s financial security programs. We are the brains behind the financial safeguards in our personal lives, so we can go about our day without worrying too much about what the future may hold for us.
How we manage risk
Explaining what we do would not be complete without explaining risk. Risk comes in many forms. Everybody and every organization faces risk. As experts in measuring and managing risk, we fill a significant need in our society. Our contribution to society’s psychological, physical and economic well-being is incredible. If our risk management programs didn’t exist, our economy would not be able to flourish.
To illustrate, here are just a few of the problems we solve:
- We determine how much an insurance company should charge for auto insurance, taking into account many factors such as the car that is being insured and details about the driver.
- We develop life insurance products so that parents can enjoy adventurous recreational activities such as rock climbing while feeling secure that their children will be cared for in the event of an accident.
- We determine how much an insurance company should charge for homeowners insurance, considering a number of factors such as where the home is located.
- We determine how much an insurance company should charge businesses for the many different types of insurance that businesses need, such as liability insurance and business interruption insurance.
- We help companies establish their retirement plans.
- We assist banks in managing their assets and liabilities and develop ways to manage financial risk.
Risk is at the heart of the problems we solve.
Areas of Expertise Not just insurance.
We were the first professionals managing risk and modeling the financial impact based on the likelihood of future scenarios. We have a deep understanding of the nature of risk and excel at putting a value on a risk, regardless of the industry.
While risk exists in all industries, no other industry handles the financial impact of risk more than the insurance industry. We have traditionally specialized in life, health, property, and casualty insurance.For the insurance industry, we develop, price, and manage insurance products. We also are involved in defining and creating pension and retirement plans for organizations. And as the population ages, we are finding roles as financial planning advisors.
Anywhere risk is present.
The insurance industry .
can’t function without actuaries. We calculate their costs and determine the premiums for policyholders; and while we don’t forecast the weather, we can tell them how much they can expect to pay in claims after the next Florida hurricane.
rely on our risk evaluation to frame their strategic management decisions. And because our judgment is highly valued, our career paths often lead to upper management and executive positions.
We’re also employed as consultants. Whether we’re part of a nationwide firm or an independent one-person practice, we help companies design pension and benefit plans, evaluate assets and liabilities, and stare down risk–all alongside top executives.
We work for the government too, helping manage its programs and overseeing public companies to ensure compliance with regulatory laws.
We also work for:
- Colleges and universities
- Banks and investment firms
- Public accounting firms
- Labor unions
- Rating bureaus
- Fraternal organizations
- Pension Fund Company
- Reinsurance Company
- Risk Management Companies
A Top-Ranked Job.
Actuary has consistently been rated one of the top jobs in the United States.
Offering a strong combination of high salary and job security.
In almost every category, such as work environment, employment outlook, job security, growth opportunity, and salary (especially salary), a career as an actuary is hard to beat.
Earn while you learn.
Actuaries are well compensated. Experienced fellows have the potential to earn from Rs 55,00,000 to Rs1,11,00,000 annually, and many actuaries earn more than that. Compensation may vary significantly according to years of experience, industry, geographic region, and responsibilities.