How to Become an Actuary – As per Institute of Actuaries Of India, “Actuary” means a person who possess the skills in determining the present effects of future contingent events or in finance modelling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits recommending rates relating to insurance business, annuities, insurance and pension rates on the basis of empirically based tables and includes a statistician engaged in such technology, taxation, employees’ benefits and such other risk management and investments and who is a fellow member of the Institute of actuaries of India.
Traditional responsibilities of Actuaries in life and general insurance business include designing and pricing of policies, monitoring the adequacy of the funds to provide the promised benefits, recommending fair rate of bonus where applicable, valuation of the insurance business, ensuring solvency margin and other insurance risks like legal liability, loss of profit, etc. They also define the risk factors, advise on the premia to be charged and re-insurance to be purchased, calculate reserve for outstanding claims and carry out financial modelling.
An Actuary works as consultant either individually or in partnership with other Actuaries in multi-disciplines like insurance, information technology, taxation, employees benefit, risk management, investment, etc. Evidently, the scope of the functions and duties of an Actuary has increased considerably under the changed conditions.
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Eligibility forBecome an Actuary
- 1.Any one who qualifies HSC or Equivalent certification of respective state.
- 2.Any graduate , post graduate ,CA ,CMA ,Engineer having sound knowledge in mathematics and statistics.
- 3.Should have a solid understanding and application of calculus.
- 4.Any one interested in problem solving and logical thinking.
- Must Read –How to become an Income Tax officer?
What does an actuary do ?
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Actuaries are experts in assessing the financial impact of future uncertain events on present situations. They perform following actions to assess this impact
· Analyzing the past
· Modelling the future
· Assessing the risks involved, and
· Communicating what the results mean in financial terms.
Role in industry :
They apply their skills in risk management and product design , in the areas of insurance, pensions, investment and more recently in wider fields such as project management, banking and health care. Within these industries, actuaries perform a wide variety of roles such as design and pricing of product, financial management and corporate planning. Actuaries are invariably involved in the overall management of insurance companies and pension, gratuity and other employee benefit funds schemes; they have statutory roles in insurance and employee benefit valuations to some extent in social insurance schemes sponsored by government.
Career opportunities foractuaries:
Actuaries are appointed in various designations in following industries
- Insurance companies
- pension, gratuity and other employee benefit funds schemes
- Banking.
Examinations :
Actuarial Exams are divided into 2 types namely three hour Written examination and Practical examinations.
Actuary Syllabus
Written examination come in 4 stages :
CORE PRINCIPLES
| CS1Actuarial Statistics | CS2Risk Modeling and Survival Analysis |
| CM1Actuarial Mathematics | CM2Financial Engineering and Loss Reserving |
| CB1Business Finance | CB2Business Economics |
| CB3Business Management |
CORE PRACTICES
SPECIALIST PRINCIPLES
| SP1Health and Care | SP2Life Insurance |
| SP4Pension and Other Benefits | SP5Investment and Finance |
| SP6Financial Derivatives | SP7General Insurance Reserving and Capital Modelling |
| SP8General Insurance – Pricing |
SPECIALIST ADVANCED
| SA1Health and Care | SA2Life Insurance |
| SA3General Insurance | SA4Pension and Other Benefits |
| SA7Investment and Finance |
Note: Those who have purchased ActEd material in year 2010 or earlier could download the upgrades from ActEd website athttp://www.ActEd.co.uk
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