Actuaries are, in short, Insurance Mathematicians.
- Actuaries usually works for an insurance company.
- The business of insurance consists of two main parts; receiving premiums and paying claims. The real world is more complicated but the general idea is the same.
- Actuaries are, for instance, involved when the premium for an insurance policy is calculated.
- Overall they spend a lot of time calculating risks. Another focus are is the time value of money.
- Insurance companies are required to keep reserves, much similar to banks, to be able to pay out future claims. How large the reserve should be is ultimately a calculation exercise, performed by actuaries.
- The Actuary may, in his role, be specialised in pricing, reserving, financial reporting, business development, software development etc.
Every now and then the Actuarial profession gets high rankings in top-job surveys.
One example can be found here.
What is an Actuary?
This short video from the Institute and Faculty of Actuaries (IFoA) in the UK explains what Actuaries do. Enjoy!
- Modelling the future
- Managing risk
- “Technical Stuff”
Insurance is about sharing risks. An important part of the role is consumer protection.
How to become an Actuary?
The formal requirements differs between countries.
In most jurisdictions the requirements consists of two parts:
– Higher education from a University.
– Passed exams or other specific requirements from an Actuarial Association.
A well reputed association is the Institute and Faculty of Actuaries (United Kingdom). Their routes to qualification are described here.
5 Great Reasons to Become an Actuary
1) Applying analytical skills to solve real-world problems.
2) Avoid being replaced by technology.
3) Increase expertise in relevant decision making.
4) Meaningful, challenging, and rewarding work.
5) Versatility and countless possibilities.
What type of person is suited to becoming an Actuary?
Institute and Faculty of Actuaries (IFoA).
- Math knowledge
- Team work
- Desire to learn
- Not afraid of statistics
- Problem solving
What does the future hold for Actuaries?
An example from the Institute and Faculty of Actuaries (IFoA).
- Future of Insurance
- Autonomous Vehicles
- Vast Amount of Data
- New ways to calculate premiums?