ACTUARIAL SCIENCE – SCIENCE OF BUSINESS WORLD
In the business world, risks are dominant problems which are faced by every entrepreneur. So businesses are constantly looking out for professionals who could handle and manage risks efficiently.Here, in the picture comes Actuarial Science.
What is Actuarial Science?
Actuarial Science is the discipline that assesses financial risks in the insurance and finance fields using Mathematical and statistical methods.
Actuarial science includes a number of interrelated subjects including mathematics, probability theory, statistics, finance, economics, and computer science. Actuaries are professionals who are qualified in this field through intense education and experience. Actuaries have a detailed knowledge about financial, economic, demographic and insurance risks. They are an expert developing and using financial and statistical methods to inform financial decisions.
Actuaries are the true seers of the and finance industry. They carefully analyze the probability of financial risks and develop creative solutions to mitigate these risks. In short, they predict the future and protect the people and companies from potential harms. The actuaries have great career opportunities as their judgement forms the basis of decision making for many business and enterprises. A study by Georgetown University’s Center on Education and the Workforce discovered that actuarial science graduates had a near-zero unemployment rate in 2010. Along with that, the career in actuarial science is expected to grow 26% in the next 8 years. The work of an actuary involves a lot of number crunching and the nature of work is quite tedious, nevertheless, it offers rewards in terms of intellectual challenge, status, job satisfaction and earnings.
An actuary in India typically works in the fields of Life Insurance, General Insurance, Health Insurance, Pension Funds, Government and Risk Management.
The role that an actuary can perform in each of these sectors can be quite varied, such as product pricing, financial modeling, valuations, risk management, carrying out peer reviews, designing social security schemes, advice on the premium to be charged etc. Actuaries are seriously smart. Actuaries go through rigorous undergraduate training and while they can be employed immediately, they must undergo an additional 5 to 10 years of training and complete 7-9 exams to achieve full actuarial status, called fellowship.
In order to become an actuary in India, one has to enroll with the Institute of Actuaries of India (IAI) which regulator the training and education of actuaries in India.Then by passing the ACET (Actuarial Common Entrance Test) and then clearing the requisite 15 papers. However, one do not have to clear all the 15 papers to secure an entry level job. After clearing 5–6 CT Papers, one can start applying for jobs that pay at max. 6–7 L per annum.
Following are the eligibility criteria to become an actuary:
- 10+2 (H.S.C) or equivalent
- Or Post Graduate in Mathematics, Statistics, Economics, Computer Science, Engineering, MBA (Finance) and other similar qualifications.
Fully qualified members of professional bodies such as:
◆The Institute of Chartered Accountants of India
◆Institute of Cost and Works Accountants of India
◆Certified Institute of Financial Analysts of India
◆Fellow of Insurance Institute of India
◆Proficient in mathematics & statistics
There is a huge demand for actuaries in both developing and developed countries such as India, Indonesia, Thailand, Vietnam, Cambodia, US, UK. Some of the companies that hire actuaries in India include Max Bupa Health Insurance, WNS, Towers Watson, PwC Actuarial Services India, Mercer, Directorate of Postal Life Insurance, McKinsey Advanced Healthcare Analytics, IDBI etc. There is a never-ending demand for actuaries all over the world.
If there is one field where career prospects are abundant because the demand exceeds supply, it is Actuarial Science. If you have interest in this field then go for it as success awaits for you.
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