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.

If you like this article then please like us on Facebook so that you can get our updates in future ……….and subscribe to our mailing list ” freely “

Eligibility for Become 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 ?

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 for actuaries :

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 :


CS1 Actuarial StatisticsCS2 Risk Modeling and Survival Analysis
CM1 Actuarial MathematicsCM2 Financial Engineering and Loss Reserving
CB1 Business FinanceCB2 Business Economics
CB3 Business Management 


CP1 Actuarial Practice
CP2 Modelling Practice
CP3 Communications Practice


SP1 Health and CareSP2 Life Insurance
SP4 Pension and Other BenefitsSP5 Investment and Finance
SP6 Financial DerivativesSP7 General Insurance Reserving and Capital Modelling
SP8 General Insurance – Pricing


SA1 Health and CareSA2 Life Insurance
SA3 General InsuranceSA4 Pension and Other Benefits
SA7 Investment and Finance

Note: Those who have purchased ActEd material in year 2010 or earlier could download the upgrades from ActEd website at

Recommended Articles

Join the Discussion