WHAT IS ACTUARIAL SCIENCE
Actuarial science refers to the branch of statistics used in calculating risk and life expectancy for the administration of pension funds and life insurance policies etc. Wikipedia defines actuarial science as the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries are professionals who are qualified in this field through education and experience. It consists of a number of interrelated subjects such as probability and statistics, finance and economics. So in short, Actuaries are the professionals responsible for assessment of risk of disability, death, loss of property, cost of things, the lifespan, and financial risk of human beings.
WHO CAN BECOME AN ACTUARY
Applicants for beginning actuarial jobs must possess a bachelor’s degree in statistics, mathematics, actuarial science, or a business-related discipline such as economics, finance, or accounting. To be a qualified actuary, one must pass professional exams after degree which typically takes another 3 to 5 years to complete depending on once ability to clear the papers. The course will train you to calculate the probability of accidents (such as fire, flood and loss of property) and give advice to insurance companies on premium and coverage.
HOW TO BECOME AN ACTUARY
If and only if one is extremely numerate and proficient in mathematics and statistics then only he is recommended for preparation for the exam Actuarial Common Entrance Test(ACET). It is held twice a year, usually in June and December. You can find the syllabus for your exam in the online SOA course catalog. Within the syllabus are electronic links to any required study notes, plus a set of sample exam problems with solutions.
CAREER AND REMUNERATION
Actuaries are mostly employed by consulting firms, insurance companies, or government agencies in the areas of life insurance, property insurance, health insurance, pension & employee benefit plans and investments companies.. Actuaries use mathematical skills to create and manage programs that reduce the adverse financial impact of life’s expected and unexpected events, including financial risks from investment. there basic job includes designing, pricing, financing, and operation of different types of insurance and pension plans, which protect people from risks of accident, illness, death, damage of property and in situation after retirement or loss of job. Because of the crucial role in decision making, actuaries are rewarded accordingly; salaries offered to actuaries are substantial. In a world full with natural and manmade risks, the profession is booming, says Tony Lee, publisher of CareerCast.com. In addition, he says, “there’s a severe shortage of actuaries,” so wages are rising. (The median salary for actuaries in 2010 was $87,650, according to the Labor Department of US.)
Actuaries are in top 10 most demanded professional of modern age. They are in demand the world over. Job prospects in this field are excellent with vast career options and opportunities as the demand for actuarial technical skills and knowledge is high. The work is quite quantitative. About 70% of actuaries work for insurance companies; about 20% for consulting firms, and about 5% for government agencies. Few also work as freelancers and their earning is huge once they are experienced.