Actuarial Science: Turn Your Passion For Statistics And Love For Numbers Into An In-Demand Career!
The field of actuarial science is slowly gaining popularity and recognition in India. Actuaries deal with the measurement and management of risk and uncertainty. These risks can affect both sides of the balance sheet and require asset management, liability management, and valuation skills. They analyse the financial consequences of risk. Actuaries use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs.
The typical work responsibilities of Actuaries include the following:
- Designing financial policies and monitoring if there are enough funds in the company.
- Determining the rate of interest to be given to customers for insurance policies.
- Keeping a check on insurance risks to minimize losses.
- Predicting the occurrence of various illnesses such as heart disease, cancer, etc., among different groups, to incorporate these risks when designing insurance policies.
- Assessing risk for the financial planning of the company.
The employment of actuaries will skyrocket much faster than average by 26 percent by 2022. It has a good scope in insurance sector. Numbers are actuaries? best friends. Students should pursue this Career if they
- Able to work with numbers efficiently.
- Have a strong hold on calculus, statistics and probability concepts.
- Have strong analytical skills.
- Are comfortable dealing with huge amounts of data.
- Can work for long durations at a stretch.
An actuary can work in the following fields:
- Life Insurance
- General Insurance
- Health Insurance
- Reinsurance Companies
- Pension Funds
- Risk Management
How to become an Actuary
The Institute of Actuaries of India (IAI) is established to provide education and training of actuaries in India. Students should clear the Actuarial Common Entrance Test (ACET).
- Take up Commerce with Maths or PCM after class 10th.
- Pursue your graduation in Maths, Statistics, B.Com or Actuarial Science.
- Take the Actuarial Common Entrance Test (ACET).
- Clear Actuarial Science Stages (15 in total). There are a total of 15 papers divided into 4 stages: Stage 1: Core Technical (CT), Stage 2: Core Application (CA), Stage 3: Specialist Technical (ST), Stage 4: Specialist Application (SA)
Actuaries should be good at mathematics and statistics. They must have good modelling skills too. To become more successful, actuaries need to be more business savvy and have good communication skills.
The demand for qualified Actuaries is much higher than their supply and hence, the average salary in this field is quite high. It is highly difficult to become an actuary, and only the most skilled professionals clear all the levels. The industry is therefore facing a resource crunch for highly qualified actuaries.
A newly qualified actuary today does not earn less than Rs 15 to 20 lakhs. The salary of experienced actuaries is much more. Actuarial students can expect an annual package of anywhere between Rs.4 to 5 lakh.