Many of us wonder how the stock market works or even try to understand the mechanism of multi-national companies and insurance agencies. Every company sets their target for a financial year and they do so even when they launch a new product in the market. The market is filled with risks which lead to ups and downs in the business. In order to avoid this uncertain situation, companies hire an actuary to periodically review its business to solve the issue and achieve its financial target.
An actuary is an expert in trade and industry matters to critically scrutinize the repercussions of risk. The risk is calculated by implementing mathematics, statistics and financial theories. Actuaries are involved in many business sectors like insurance agencies, government, employee benefits department and as well as in hospitals, banks, investment companies and industries to manage their financial hazard.
Change is inevitable, and with the risk it carries along, one can do nothing but avoid the opportunities hidden in it. Actuaries explore the prospect of the business; take chances and figure out ways to reduce the risk. This inspection is done using analytical and mathematical skills by arriving at possibilities to benefit from the disguise. In common language, an actuary’s job is to decipher the ways and means to cope with the risk of the business.
The nature of business differs from company to company. Due to this, the complexity of operation varies that cannot be met by regular accountants and business forecasters. An insurance actuary studies the insurance rates and likelihood to decide the suitable rate for various categories of policies. A finance actuary works to comprehend unusual tactics to settle in risk circumstances. An actuary can work single-handedly or act as a leader to the company’s decision making team.
Finance actuary is yet another filed where an actuary can showcase their skill with precise problem-solving ability in short-term or long-term businesses. Government of any country often has long-term projects for which they hire an actuary since settling for an analyst or forecaster would not prove beneficial to the project undertaken.
When one has the skill and talent to positively influence businesses and people, then actuary career is the perfect match. Apart from this, there are few other reasons as to why one can become an actuary.
Diverse fields- Actuary career has many fields to work in like insurance, healthcare, banking, pensions, or any company which has good scope for an actuary.
Key role- An actuary plays a key role in making prominent beneficial decisions for corporate giants and government that directly benefits the legislation, companies and common man.
High pay- An actuary earns good right from the initial stages of career even though when he/she is a fresher.
Self-contentment- An actuary possesses excellent interpretation skills. Their professional problem-solving ability furthers business, economic as well as social systems.
An ocean of opportunities- An actuary can settle down in any corner of the world since the scope of this profession is in demand all the time.
To become an actuary, one needs to invest three to six years of time and hard work. To become an actuary, the below mentioned steps are to be followed;
1. Higher degree in Math or an A-Level: An excellent hand at math and statistics is must if one desires to become an actuary which indirectly widens the career opportunities.
2. Qualification: Employers prefer candidates possessing a degree either in
3. Become an actuary intern: Every employer prefers an experienced candidate over a fresh graduate. While graduating, one can work as an intern for insurance company or at a consultancy. This enhances the likelihood to be appointed as an actuary.
4. Examinations: To be employed as an actuary, one must clear two exams. However, an actuary with one exam qualified and an internship certificate will also be preferred.
5. Be employed in any country: An actuary can be employed in any part of the world with the skills and talent they possess. An actuary has the option to be a technical research actuary or commercial activity actuary.
To be an actuary, one has to have immense knowledge of mathematics and statistics to solve business problems. For this, an aspiring actuary ought to possess an undergraduate degree with majors as math, statistics, finance, economics or business. Few schools also have specialized actuarial courses. For better job opportunities, one must seek internship in their field of actuary with the respective company.
An actuary’s portfolio is enhanced and given preference when he/she is certified by Society of Actuaries (SOA) or Casualty Actuarial Society (CAS) for which the actuary has to invest four to six years. To be certified, passing a series of exams is a mandate; known as Validation by Educational Experience (VEE). To acquire more knowledge, an actuary has to attend corporate seminars and online classes.
Initial pay for an actuary depends on the series of exams he/she has cleared. However, the salary post clearing one exam would normally range from 50-65K; 52-68K and 56-74K for clearing second and third exam respectively.
An actuary in actual innovates new pension cum retirement plans for the youth. The career growth of an actuary reaches sky-high when he/she is aware about the possessed skills and abilities. The optimism and strength aides him/her carve a niche’ for themselves in the market to stand alone as a brand. And with internship and sponsorship, an actuary’s career is certain to grow multifarious.
It has been estimated that an actuary’s career growth would grow by 27% by 2020 with 5,800 job openings. 58% career opportunities are expected for consulting actuaries.