An actuary is nothing but a business professional which basically deals with the measurement and management of risk and uncertainty .The name of the corresponding profession is called as actuarial science. The risks caused can affect both sides of the balance sheet and require asset management, liability management and valuation skills. Actuaries provide a proper assessment of financial security system.
Students who wish to pursue actuarial science must be more than 18 years. He / She should have completed any one of the following educational qualifications or standards as follows:-
- Passed 10+2(H.S.C) or any equivalent with 85% in mathematics / statistics
- Any Engineer / CA / CS / MBA (FINANCE) / MCA
Fully qualified members of following professional bodies such as:-
- Institute of Chartered Accountants of India (ICAI)
- Institute of Cost Accountants of India (ICWAI)
- The Institute of Financial Analyst of India (IFAI)
- The Insurance Institute of India (III), passing with subjects 81- Mathematical basis of insurance and 82-Statistics
The work of an Actuary is vast.
Actuaries use the theory of profitability and the theory of compound interest together. They use statistical techniques to highlight and solve financial problems. Actuaries suggest appropriate courses of action and to predict the financial implications of such actions. Their works has a strong mathematical bias and is essential desk-work performed in a variety of settings.
Some 50% of actuaries work for insurance and pension funds. They investigate on such matters as relative life expectancy of various groups in the population, and assessing the effects of life styles and characteristics on premiums and policies and investment. In other insurance branches- accident, fire, motor- actuaries assess risks and pin – point variables in the light of changing conditions and life styles and advise on reserves necessary to cover long term liabilities.
In government departments actuaries advise on public service pensions and insurance schemes. Though they are concerned with various aspects of people’s lives and welfare, actuaries do not usually have much contact with people outside their own office.
About 30% of actuaries work in consultancy. Much of their work involves advising clients, usually about pension funds. They also advise insurance companies too small to have their own actuarial department, or give specialist advice to large insurance companies. There are also openings on merchant banks, the stock exchange and other financial institutions, as well as some limited opportunities in industry and commerce. This is such a type of work which is totally a desk-work.
Actuaries solve complicated problems because it’s a work of a good mathematician. A student perusing Actuarial science should have a strong base of mathematics. It improves the ability to interpret and express in clear English results of mathematical and statistical analysis. They have to keep up with developments, especially relevant legislation and data processing application.
- HARYANA ENGINEERING COLLEGE, Jagadhri (HARYANA).
- CHRIST UNIVERSITY, Bangalore.
- THANTHAI HANS ROEVER COLLEGE OF ARTS AND SCIENCE, Perambalur.
- BS ABDUR RAHMAN UNIVERSITY, Chennai.
- BISHOP HEBER COLLEGE, Trichinappalli.
- INTERNATIONAL SCHOOL OF ACTURIAL SCIENCES (ISAS), Hyderabad.
- INSTITUTE OF ACTUARIES OF INDIA, Mumbai.
- DS ACTURIAL EDUCATION SERVICES (DS Act Ed), Mumbai.
- AMITY SCHOOL OF INSURANCE AND ACTURIAL SCIENCE (ASIAS), Noida.
- SHRI VILE PARLE KELAVANI MANDAL’S NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, Vile Parle, Maharashtra.
PAY-SCALE OF ACTUARIAL SCIENCE*
Payment scale of actuarial science is high. The basic salary varies from about INR 3 Lakhs to INR 9 Lakhs per annum; moreover the bonus that is received each year is around INR 2 Lakhs per annum.
*These are approximate figures from our survey and should not be used as benchmark in any scenario.