Career in Focus-September

The third career of this series is "Actuarial Science". After vigorous study and extensive research, we bring to you this month's career option along with some related information.

Actuarial Science

Actuarial science is a field of study that uses a range of mathematical and statistical knowledge to assess the risks that may occur in many industries like finance, healthcare, investments, banking, and insurance.

It can be more or less defined as a comprehensive mixture of mathematics, statistics, computer science, economics, and finance, that facilitates the analysis of prospects of any industry, predicting and avoiding stark losses.

Roles and responsibilities of an actuary

• Analyzing specific data with the help of certain computer software.

• Coming up with strategies to cope with the financial impacts of undesirable events.

• Create insurance plans and pension schemes.

• Avoid manage and respond to various everyday financial risks that a company may face.

• Minimize the cost of the risk too.

Different sectors demanding actuaries

• Property and casualty insurance industry

• The management department of various companies

• Government sectors

• Banks

• Investment companies

• Colleges and Universities

• Rating Bureau

• Consulting services

• Health-related industries

Job profiles after pursuing actuarial science

• Actuarial analyst

• Actuarial modeler

• Quantitative analyst

• Risk manager

• Consultant

• Accountant and Auditor

• Mathematician

• Budget analyst

• Financial analyst

• Cost estimators

• Post-secondary teacher

• Economist

• Insurance Underwriter

• CA/CS

Preferred majors or minors for bachelor’s degree (for a career in actuarial science)

• Mathematics

• Statistics

• Finance

• Economics

• Actuarial Science

• Computer Science

Requirements to start a career in actuarial science

To go ahead with a successful career in actuarial science, one may require a very strong mathematical/statistical background. The very basic requirement is a bachelor’s degree in mathematics/statistics. (A student may also go for a major in economics/finance / actuarial science, with a minor degree in mathematics or statistics).

After a Bachelor’s in Mathematics/ Statistics, the student may go for a master's degree in Actuarial Science.

Colleges offering MSc actuarial science

• Institute of Actuaries of India (IAI)

• Christ University

• Amity University

• University of Madras

• Kerala University

• Institute for Actuarial and Quantitative Studies

• Bishop Heber College (Tamil Nadu)

• Chandigarh University

• NIMS University

• Gurugram University

• DS Actuarial Education Services

• IGNOU (Distance Learning)

• BRAOU (Distance Learning)

Entry requirements

• Institute of Actuaries of India -

To pursue graduation in the field of Actuarial Sciences, the aspirant needs to pass the 11th and 12th standard with Mathematics, with an aggregate of 50-60% (which may vary), and then qualify for the ACET exam.

However, to pursue MBA or PGDM course in Actuarial Science, one must score an aggregate of 50% marks in his/her graduation and then qualify for management entrance exams like - CAT, CMAT, or MAT. This may be followed by personal assessment rounds like- group discussions, interviews, and WAT.

• Christ University

Christ University conducts CUET (Christ University Entrance Test) followed by an interview to filter students. The minimum requirement to attempt CUET is a 50% aggregate mark during undergraduate.

• Amity University

Amity University also conducts an entrance exam (conducted by the university itself), followed by a personal interview to select students.

• Kerala University

Kerala University also conducts an entrance exam to filter students for the post-graduate program.

• University Of Madras

The University of Madras considers both entrance exams and merit list (based on marks scored during undergraduate), followed by a personal interview session, to filter students for the course.

• Institute of Actuarial and Quantitative Studies

To qualify for admission in IAQS, an aspirant must at first satisfy the minimum requirements followed by an entrance exam.

• IGNOU/ BRAOU

For a correspondence course, a student only needs to qualify the minimum requirements of scoring a 50% aggregate mark during his/her undergraduate. However, the only accepted major subjects are Mathematics and Statistics.

Certifications and licensure requirements

Most of the recruiters require students to be professionally certified either by the SOA or the CAS.

SOA: The Society of Actuaries: It is the largest organization that serves actuaries, employers, and candidates too. It is engaged in certifying candidates in the field of life insurance, health insurance, investments, retirement benefits, and finance.

CAS: Casualty Actuarial Society: It harbors experts from the fields of casualty insurance, reinsurance, finance, and risk management. It certifies candidates in the field of property and casualty, which may include automobile, medical malpractice, workers compensation insurance, etc.

Professional organisations serving actuaries and employers

These professional organizations are involved in either verifying and certifying candidates or keeping individuals updated with the developments in the field and helping them by establishing a network of contacts to find appropriate jobs.

• American Academy of Actuaries

• American Society of Pension Professionals and Actuaries

• The Actuarial Foundation

• The International Actuarial Association

• The Society of Actuaries

• Casualty Actuarial Society

What does it take to be a certified actuary?

• After getting the graduation done (or during the graduation), there are a series of 10 exams awaiting, that test the aspirants' mathematical skills and knowledge of insurance policies (which takes years to be thorough with). Usually, it takes around 5-10 years for an aspirant to qualify all of them, and get certified.

• Firstly, the aspirant needs to become an associate (40-50% success rate), by qualifying all the preliminary exams and then qualifying 3 more, to attain fellowship (40-50% success rate).

• However, students may get into jobs by qualifying for a few of the early exams, and many don’t go for all 10 of them.

• A student who doesn’t prefer to attempt exams may go for a series of online modules, tests, and an in-person professional course to attain associateship and then complete 3 extra modules, assignments and work on a project to attain a fellowship.

• It also takes a few actuarial internships these days to get into high-paying jobs.

Popular firms that demand actuaries

• Liberty Mutual

• Miliman

• Towers Wattson

• Aon Hewitt

• The Travellers

• Prudential

• ING

• The Hartford

• Allstate

• Nationwide

• Max Bupa Health Insurance

• Swiss Re

• PwC Actuarial Services India

• Future Generali

• IDBI

Perks of being an actuary

• Popularity - Actuary Science has been growing worldwide and is considered to be one of the top jobs globally (#1 in the USA,2016)

• Good Package - Actuaries usually receive good packages which noticeably gets doubled within 5 years

• Career Options - The variety of careers to opt for ranges from being in a teaching profession to leading the management department of a Multinational Company.

• Balanced Work Life - The job offers a very less stressful life, including a work-from-home option too (at times).

• In-Demand Job - The demand for an actuary never goes out of demand, and they suffer from the least possibility of losing jobs.