Actuary Jobs

An actuary is a business professional who analyzes the financial consequences of risk. He uses mathematics, statistics and financial theory to study uncertain future events. They work more in the areas of insurance and pension programs.

Actuaries may work for insurance companies, government jobs, employee benefits departments of large corporations, investment firms, banks and in businesses that need to manage financial risk. They work on determining future risk, market price decisions and also formulate investment strategies. Most actuaries specialize in life and health or property and casualty insurance; others work primarily in the field of finance or employee benefits. Actuaries draw a salary ranging from $45,000 to $55,000. The median annual wage of actuaries was $87,650 in May 2010.

Actuary job description

In the 1990s actuarial science combined financial theory and stochastic methods to help businesses assess risks of certain events occurring so that they can plan to minimize that risk. Actuaries can also help address pension issues by providing information on pension contributions required for a certain retirement income. An actuary can guide investment based on possible maximizing on returns in the wake of potential risks.

Actuaries determine the cost of financial liabilities that have already occurred, called retrospective reinsurance, or the development or re-pricing of new products.

Reinsurance actuary: In this area, one insurance company arranges to share a large prospective liability policy with another insurance company in exchange for a percentage of the premium.

Property/casualty actuary: They calculate the expected amount of claims resulting from automobile accidents. This depends on the insured person's age, sex, driving history, type of car, and other factors. Actuaries make sure that the price, or premium, charged for such insurance will enable the company to cover claims and other expenses.

Actuaries are consulted by lawyers in civil suits for computation of losses or income. Actuary jobs can be sought in government departments to calculate the costs of new services or savings due to new schemes or new sources of revenue.

Actuary job prospects

Disciplines in the insurance field wherein an actuary works include:

• Life
  
  
• Health
  
  
• Pension
  
  
• Annuities and Asset management
  
  
• Property
  
  
• Casualty general insurance
  
  
• Reinsurance
  
  
• Social welfare programs
  

Insurance sectors include: Property, People (other than health and life), Auto insurance, Homeowners insurance, Title insurance, Homeowners insurance, Commercial property insurance, Malpractice insurance, Marine insurance, Products liability insurance, Terrorism insurance.

An Actuary analyzes the possible outcomes and types of events that could possibly lead to a situation wherein a policyholder makes claims against his/her insurance policies. He tries to assess the costs associated, if claim could occur.

Actuary skills

Skills are required in areas of:

• Mathematics
  
  
• Computer science
  
  
• Economics
  
  
• General Business (to assess risk, formulate policies to minimize risk)
  
  
• Probability
  
  
• Statistics
  
  
• Communications
  
  
• Interpersonal
  

Training for actuary jobs

• To become an actuary you must become an Associate, and eventually a Fellow, of one of the professional societies.
  
  
• You need to clear a series of examinations administered by these societies.
  
  
• Entry into the profession is very competitive and success in the field demands commitment and hard work.
  
  
• Potential employers demand a 3.2 GPA or higher and at least clearance of 1 actuarial exam.
  
  
• An actuary should possess sound technical ability, good communications skills, and a background that comprises mathematics, statistics, business, etc.
  
  
• The actuarial exams conducted by the societies cover a variety of subjects of importance in the insurance industry.
  
  
• Exams cover probability, interest theory, risk management, life contingencies, and various topics that are specific to insurance.
  

Qualifying examinations

To become an accredited actuary one has to pass a rigorous series of professional examinations. Clearing the preliminary exams is the common foundation towards becoming an actuary. The computer-based exams are conducted by Society of Actuaries (SOA), Casualty Actuarial Society (CAS) and Canadian Institute of Actuaries (CIA). A mathematics-related bachelor's degree helps prepare students to take actuary exams.