Actuarial science

Published: 22nd March 2010
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Actuarial Science applies mathematical and statistical methods to finance and insurance, mainly to risk assessment. It includes a number of interrelating disciplines, including probability and statistics, finance, and economics. Actuarial Science is a way of tackling the operational issues which financial business face, mainly where there are significant financial uncertainties in running the business.

Actuary is rated 6th highest pay jobs in America in according to a recent survey released by CNN Money on December 1, 2009. It is ranked ahead of a Finance Director. CNN Money said that the salary of an Actuary ranges from a median of $129,000 to a high to $257,000 per year.

Become an Actuary? What the heck is an actuary? That's what I first said when I heard that job title. Little did I know that being an actuary has been consecutively ranked as one of the best jobs in United States by the Jobs Rated Almanac. The fundamental role of an actuary is to assess a company's exposure to economic risk. Given that the job was first conceived in the insurance industry, it is no coincidence that insurance companies still employ the majority of actuaries. Think your insurance premiums are too high? You can blame an actuary for that because it is the actuary's job to calculate and set the rates so that insurance companies can stay profitable.

Insurance Institute of India conducts Licentiate, Associateship and Fellowship plus other training programmes for insurance services. The eligibility criterion for recruitment to both the LIC and GIC is the same. An AAO (Assistant Administrative Officer (class I officer)) must be a graduate/postgraduate in any subject with minimum of 50 percent marks, from a recognized university. The candidate''s age should be between twenty-one and twenty-eight years. AAO''s recruitment exam is an all India level exam. To be recruited as a class II officer, the candidate has to be a graduate in any discipline. Class III and class IV levels are open to graduates and school-leavers.

To become an actuary, you could take up an advanced degree in actuarial science. You can also achieve competency in this field of study by taking up online education. An actuarial science degree consists of subjects like calculus, statistics, business communication, finance and economics. Apart from an actuarial science degree, a degree in economics, math, finance or even business can make you an actuary. Though the actuarial science degree is the most preferred, you can successfully get a job only when you clear the actuarial exams.

Mathematicians have before them areas such as operations research, programming, design of computer systems and actuarial science. Statisticians play a vital role in national planning.Those who have acquired higher qualifications can take up work in any field of science and excel in various categories. Those who take up physics have ample opportunities in research areas such as Astrophysics, Meteorology, and electronics. Chemistry is the discipline of its own charms, spreading its tentacles to fertilizers, pharmaceutical, metal, oil, soap, paper, polymer, textile, fuel, food, plastics, paints, varnish, and pesticide industries. Research in different branches such as physical, analytical, electro, radio, histo, geo, bio-chemistry offer interesting challenges.

An actuarial analyst should be well versed in rate-making and reserve analysis, multivariate calculus, statistics, probability, linear algebra, and oral and written communications. They should also be skilful in interpersonal, managements and organizing skills.

To make a profit from the sale and maintenance of life policies, insurance companies must calculate the probability of paying a policy at any time plus all administrative involved in the upkeep of such plans. The cost of the insurance is determined by mortality tables crafted by actuaries. Professional actuaries deal with the financial impact of risk and uncertainty by employing mathematics to find out rates of probable mortality within a given demographic.

one of the most lucrative careers that you can go into if you have a degree in math. It also requires a great deal of self-discipline as there are a series of exams that you are required to take and pass throughout your career in order to advance in the field. Most actuaries work for insurance companies in either the Life/Health/Pension area or the Property/Casualty area. Basically in a nut shell, actuaries help price the product or estimate reserves ( an amount of money that the insurance company is required to set aside to pay for the claims on their books).

When the actuary is calculating these terms, they will calculate the policy prices based on a number of factors, including the payment of claims, administrative costs, and the desired profit margin. As a part of their calculations, they be referencing mortality tables, since this will directly determine the likelihood that they will need to pay on a particular claim. These mortality tables are tables based on statistics which show them the expected annual mortality rates. This allows them to estimate life expectancy based on age and other factors. As a part of their various calculations, they are basing this on actuary science, which is based on probability and statistics.

Read About International study programs and also read about career in accounts and actuarial science

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