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The future is an uncertain place full of risk, but where there’s risk there’s also opportunity. The role of an actuary is to help companies manage and reduce the risks facing their business. Using numbers, facts and careful analysis, actuaries evaluate the likelihood of future events in an effort to avoid the “worst case” scenario from occurring.
When risk cannot be avoided, actuaries offer creative ways to reduce the likelihood that undesirable events will occur. Being an actuary is one of the highest paid professions.
It's a career where you can use your talents to solve real world problems. It's a commitment to uphold certain standards of performance, professionalism and ethics. It's a qualification you can take anywhere in the world.
You could help solve problems in business - like pricing products or managing risk. Or find solutions to social and economic dilemmas.
You are right into the Actuarial profession if
You would like to "earn while you learn."
You want a highly competitive salary and excellent benefits.
You have a mathematical bent of mind.
You want a career that is dynamic and challenging.
You want a career with many opportunities that will provide you with skills that are transferrable across multiple industries as mentioned below.
( CS1A Theoretical Exam + CS1B Computer-based Exam using 'R Programming')
CS2:Risk Modelling and Survival Analysis
( CS2A Theoretical Exam + CS2B Computer-based Exam using 'R Programming')
(Actuarial Mathematics CM1A Theoretical Exam + Actuarial Mathematics CM1B Computer-based Exam using 'Excel')
CM2:Loss Reserving and Financial Engineering
(CM2A Theoretical Exam + CM2B Computer-based Exam using 'Excel')
SP0: Masters Level Thesis
SP1: Health and Care
SP2: Life Insurance
SP5: Investment and Finance
SP6: Financial Derivatives
SP7: General Insurance: Reserving
SP8: General Insurance Pricing
SP9: Enterprise Risk Management
Two of these SP modules have to be passed to be eligible to qualify as a Fellow. You do not need to take any SP subjects to qualify as an Associate.
SA0: Research Masters Thesis
SA1: Health and Care
SA2: Life Insurance
SA3: General Insurance
SA7: Investment and Finance
One of these subjects has to be passed to be eligible to qualify as a Fellow. You do not need to take any SA subjects to qualify as an Associate.
Personal and Professional Development (PPD) is the new requirement which applies to all learners. PPD is the replacement program for work-based skills (WBS). This is a mandatory requirement for members of IFOA.
As an actuary, you have to use mathematical equations, statistics and financial theories to determine the risk and uncertainty of involved financial costs. You have to assess risks and help the company to take measures to minimise the risk.
Finance and Investment
Enterprise Risk Management
Analyse the events and its risks that can increase the economic costs for the company; for instance, untimely death or a natural disaster will cause an insurance company to pay the insurance amount to the nominee and this pre-mature payment can cause losses to the insurance company.
Design, test and implement various business strategies like pension plans and insurance investments to maximize profit and minimize losses. The actuary has to create in-depth reports containing charts and tables to explain the business strategies and its benefits.
In investment, actuaries are involved in a range of work such as: pricing financial derivatives, working in fund management, or working in quantative investment research. Often investment actuaries work in fields where their understanding of insurance or pension liabilities helps them to manage the investment of the corresponding assets.
Actuarial consultancies offer a whole range of services to their clients on issues such as acquisitions, mergers, corporate recovery and financing capital projects. Many also offer advice to employers and trustees who run occupational pension schemes.
Actuaries serve an important role with predictive analytics by using modelling and data analysis techniques on large data sets to discover predictive patterns and relationships for business use. The actuarial profession has been actively advancing the use of predictive analytics methods in its work.
Actuaries are long recognised as key contributors of business insights around risk and data analysis.
The term “Data Science” has emerged only recently to specifically designate a new profession that is expected to make sense of the vast stores data. But making sense of data has a long history and has been discussed by actuaries, scientists, statisticians and others for years.
Long before data science became a mainstream career , data had been at the very foundation of the actuarial profession.
For actuaries, data analysis is the prerequisite to tie past observations to future expectations, unearth behavioral trends that feed into product design and market prospects, bring forth the nuances and patterns that allow the creation of risk reduction & fraud prevention strategies.
If you want to become a part of this great profession please feel free to talk to us.
Please click below to find our training program for the upcoming exams.
Confucius suggested, "Choose a profession you enjoy, and you will never have to work a day in your life." It's solid advice, but figuring out what you enjoy doing and how to turn it into a profitable business or job isn't always straightforward.
It goes without saying that selecting a career that one enjoys over one that is solely for financial gain has various advantages. You have a good probability of succeeding and producing money if you appreciate what you do. In several of these subjects, such as actuarial science and data science, we offer coaching and placement. You, too, can be a part of our success. If you're interested, If you're dedicated enough then please let us know.
Understanding concepts in these careers actuarial science & data science is critical to establishing a successful long-term career. As mentors, we ensure that everyone understands our concepts and can apply them to real-life circumstances.
Watch our sample videos to understand how complex concepts are explained thorough step by step explanation in a simple manner so that any one can understand.
An actuary is essentially a specialist in estimating and controlling risk who often works for an insurance business.
Actuarial science is the study of risk assessment and evaluation using mathematical and statistical techniques to address significant issues in insurance, pension, finance, risk management, investment management, banking, corporate finance, etc.
The initial actuarial science papers like CM1,CM2,CS1,CS2 are so nicely designed that they are required in almost every industry.
Actuaries examine the monetary costs associated with risk and uncertainty. They estimate the risk of prospective events using mathematics, statistics, and financial theory, and they assist clients and corporations in creating policies that reduce the price of that risk.
Actuaries look at the financial expenses incurred by risk and uncertainty. They use mathematics, statistics, and finance to evaluate the risk of potential events, and they work with clients and businesses to develop policies that lower the cost of that risk.
Some of the initial CP paper topics are mentioned below
Financial Mathematics like calculating the present values, accumulated future values of series of cashflows. Pricing financial contracts like bonds, shares etc. using discounted cashflow method.
Pricing and reserving life Insurance policies.
Pricing and reserving general Insurance policies.
Distributions, Central Limit Theorem, Confidence Interval, Hypothesis Test ,Data Analysis & Regression Analysis ,ANOVA, Generalized Linear Model,Monte Carlo Simulation etc.
Stochastic Process, Survival Models, Black Scholes formula ,Credit rating, Interest rate modelling, CAPM ,Mean Variance Portfolio Theory,
Its a worldwide affiliated course. You will be recognized worldwide from wherever you do. In terms of job satisfaction & perks its one of the all time best profession in the world. If like playing with numbers & you have a business sense this career is definitely for you.
You can be an actuary from any Institute in the world. There are plenty in number. However most Indians pursue career from IAI India, FOA UK or from SOA,CAS USA.
Any one can start appearing exams from IFOA or SOA however to become a member in India IAI,one has to clear ACET Exam from IAI to become a member.There are other eligible criteria. Please visit the below link for details.
Actuarial Science is regarded as one of the best professions of all times in terms of job satisfaction & perks & its a worldwide affiliated ,zero unemployment career.
There are many options. However most Indian students pursue actuarial science career from IAI India/IFOA UK/SOA USA or CAS USA.
One can directly start appearing papers from IFOA UK or SOA,USA however one should be a member of IAI before start appearing papers. One way to get membership is to clear entrance exam conducted by IAI, India. For all possible ways how one can get membership please visit their website using the following link.
ACET details link
On an average it can take 4 to 5 years to become a fellow actuary who seriously pursues the career.
Employment of actuaries is projected to grow24 percent from 2020 to 2030, much faster than the average for all occupations. About 2400 openings for actuaries are projected each year, on an average.
It depends upon individual ability to pass the exam in a single attempt, In that case it might take 7-8 years to become a fully qualified actuary. It is very normal that you might take more than one attempt for few papers while there are also few easy papers which you can give along with another paper.
Fortunately, you can start working in an entry-level actuarial position before you have passed all your exams. It is important to gain industry experience along with passing papers.
Firstly you must love mathematics and problem solving. Secondly must have lot of patience in passing papers as most students entering this field want to become a qualified actuary in the initial five years which is not the case finally very important if you can handle initial failures properly then you can choose to be a part of actuarial profession.
In all phases of insurance operations computers are extensively used. However, no computer can provide judgement and inventiveness that actuaries do. So as a result of this number of actuaries have been increased than before.
Pay in this field starts from INR 3.5 lakh per annum and goes upto INR 50 lakh per annum depending on multiple factors such as your experience and skills.
The average actuary salary in India is INR10.11 lakh per annum.
Different roles Actuarial analyst ,Pricing analyst, Risk analyst, Reserving Actuary etc,.
Actuaries mostly work in Insurance and Reinsurance companies.
You will be gold if you pursue careers in analytics with a background in actuarial science especially within the finance, Investment Banking, Pension and Insurance domain.
A commerce student who have studied mathematics upto class 12 can pursue actuarial science.
Yes it is possible for a non-math student to study actuarial science by studying mathematics and statistics first and continuing with actuarial subjects.
Starting after completion of your 12 class might be the best time to start actuarial career and you can continue it along with your graduation.
Yes, we do have B.Sc (Actuarial Science) course in various colleges in and around India.
No, it is not compulsory to take B.Sc Actuarial science because students from different backgrounds pursue a career in actuarial science..
First and foremost would be B.Sc Statistics or Mathematics as these two plays a major role in actuarial subjects and you can also opt for a degree in Economics or Finance.
Institute and Faculty of Actuaries(IFOA) is a professional actuarial body in UK which is dedicated to educating, developing and regulating Actuaries based both in UK and internationally.
There is a massive difference between IAI and IFOA membership fees which can easily be noticed.
IFOA is costlier when compared to IAI
You need to complete an online application form from the IFOA official website in order to become a student member.
IFOA has advantage of higher pass rates as compared to IAI.
As a non member you can write CM1 OR CS1 paper.
You are allowed to take only one paper as a non - member.
After passing CS1 OR CM1 you should become a student member of IFOA .
The IFOA has mutual recognition with nine actuarial associations around the world including the Institute if Actuaries of India.