Are You A Risk Taker? ACTUARIAL SCIENCE Could Be The Right Career For You!
Shout out to all those mathematical nerds out there. Here?s a profession that has been heavily underrated while we feel is a real money maker. Sit back and learn and that you must about Actuarial science and the job of an Actuary. Let?s begin.
WHAT IS ACTUARIAL SCIENCE?
In the simplest of terms, it is the study of risks. The need to predict, assess and control risks is at the heart of an economy. Businesses rely on risk management for the process of decision-making and safeguarding their future against uncertainties.
There are three main ways that an individual, trained in actuarial science, puts on the cape, of a savior of the financial world. An actuary identifies the possibility of a bad event or a catastrophe. He evaluates a solution to manage and minimize the possibility of said bad event, or catastrophe, from occurring. He also analyses the losses, that the risk might bring about, and devises solutions to reduce its consequence to the economy.
And an actuary does all of the above, and more, without the help of guesswork and Nostradamus?s foretelling. He is skilled (underline, bold and highlight it to the nth power) in mathematics. He has a deep understanding of finance, economy and its constituents, including its people, and can analyze how they are going to evolve in the future. Hence, he is able to use that mad mathematics and statistical, skills to develop financial models that can determine present decisions, taking into account the uncertainties of the future.
JOB ASPECT OF AN ACTUARY?
Primarily in the insurance industry. They are the ones who are consulted on what insurance premiums should look like based on the history of the policyholder. They have a wholesome picture of mortality and disability rates based on demography, location, and other related factors that establish the probabilities of undesirable events. They determine how much does a vehicle owner, a homeowner, a business owner, have to pay against insuring their property, or safeguarding their liabilities, for the future.
They also work with corporations, assisting their growth and decision-making processes by analyzing their financial risks.
They are equipped with the skill to determine future pension schemes, gratuity, benefit plans, and other social security policies, both for the public and the private sector.
A lot of actuaries function as consultants, working independently and providing their invaluable expertise to the government or private businesses.
HOW DO I PURSUE THIS PROFESSION?
If you hold immense interest in maths, business, calculations, and accounting, this field is where you belong. Many universities offer courses in Actuarial Science that provide pertinent training for qualifying actuarial certifications. The process varies between countries with some requiring actuaries to qualify a set of examinations to become a practicing actuary, some prescribing to a university degree or exemptions based on university courses taken, while others following a combination of university degree and professional certification.
In the United States, an actuarial science degree is not essential to become an actuary. However, your undergrad degree should focus on math, economics, and statistics, that are essential to qualify the certifications/exams. These exams are conducted by the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS).
Top institutes offering this course are:
The average tuition fee charged in India for B.Sc. Actuarial Science course ranges between INR 50,000 and 3 Lacs.
So put those crazy math heads to work and your smartest foot first, because as the saying goes ?If you can?t outnumber them, outsmart them!?