Numbers are actuaries’ backbone. They analyze different types of data to calculate and manage risk. Hence, they help companies to form well-organized policies by protecting themselves from uncertain and undesirable future events. Actuaries are required in any field where risk is involved, including banking, insurance, healthcare, and even non-financial areas.
Their ability to analyze data to understand risk makes them especially useful in the field of Insurance. Actuaries are the masterminds behind insurance policies. They analyze facts, figures, and trends to formulate various insurance programs.
What is an actuary?
“Actuary” means a person who is proficient in regulating the present effects of future possible events or in financial modelling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits recommending rates relating to insurance business, annuities, insurance and pension rates on the basis of empirically based tables and includes a statistician engaged in such technology, taxation, employees’ benefits and such other risk management and investments.
Actuaries are professionals who perform an actuarial analysis. They determine future events and draw conclusions. They assess insurance operations and underwriting procedures. Technical assistance regarding actuarial matters is provided to policy examiners and other technical staff. Actuaries hold a legal duty to protect the benefits promised by insurance companies.
What does Actuaries do?
The usual work role of Actuaries involves the following:
To design financial policies and observing if there are enough funds in the company.
Keeping a check on insurance risks to minimize losses.
To determine the rate of interest is given to customers for insurance policies.
To evaluate the risk for the financial planning of the company.
To design a product.
To communicate what the results mean in financial terms.
Actuaries help and design the products in,
Enterprise Risk Management
Who can become an Actuary?
Let us take a look at what you need to have to pursue a career in this field.
Took up Commerce with Mathematics or PCM.
An HSC passed, graduate, postgraduate, Engineer, MBA, CA, ICWA etc with sound knowledge in Mathematics & Statistics.
Loves logic and problem solving
Excellent business awareness
Career Opportunities for Actuaries
Actuarial is a field with an immense scope if you have the right set of skills. According to the IAI, there are only 9182 students, 160 associates, and 344 fellows in India. The demand for qualified Actuaries is much higher than their supply and hence, the average salary in this field is fairly high.
This will help you work in multiple areas in both private and government sectors. Within the field of insurance, you can work in different areas, such as health insurance, vehicle insurance, life insurance, employee retirement and benefit plans, general insurance, etc. Besides insurance companies, you can work in Pension and Benefits firms.
You can even work as a consultant and advice companies in multiple areas such as life insurance, taxation, employee benefits, risk management, investment, etc.