Actuarial Science

The process of scientifically estimating the risk in the areas of insurance, finance, and business is called Actuarial Science and the professionals equipped with the skills of actuarial science are called Actuaries. They are skilled with the abilities to analyze statistical data related to mortality, accident, disability, sickness, and retirement rates and create probability charts to predict risk and liability for payment of benefits in the coming times. These professionals use statistical, mathematical, and computational methodologies in giving their evaluation. The job responsibilities of these professionals may include planning and costing of policies, supervising the funds, suggesting reasonable rate of bonus, and so on. 
 

Actuaries need to have a thorough understanding of economic, financial, insurance risks, demographic; and should be experts in developing and using statistical and financial models to convey financial decisions. They should know all about pricing, establishing the amount of liabilities, and setting capital requirements for vague future events. They analyze the costs of risk and uncertainty. They use statistics to estimate the possibility of events like illness or accident and assist their clients set insurance rates and payouts to allow them to manage the cost if it does. These professionals may also determine insurance charge required and cash reserves essential to ensure payment of potential benefits. Also they study factors that may affect an individual’s health, foresee the life span of an individual, analyze the possibilities of car accidents, and design and price a product. Financial Management and corporate planning is also their core area of interest.

They also work for pension, gratuity and other employee benefit funds schemes and play statutory roles in insurance schemes sponsored by the Government. Also they estimate the probability of disastrous events like hurricanes, pandemics, earthquakes, and terrorist attacks. Also they develop the investment and pension plans for financial services, conduct exhaustive data analysis and statistical modeling and administer staff, and report financial predictions.
 

Route to Actuarial Science Profession
 

Significant Statistics

• All the colleges have mathematics or related subjects as their minimum eligibility to study actuarial science except the ACET exam
• For admission to majority of the colleges Math is compulsory

Pros

• Lucrative career prospects as it is one of the highest paying jobs
• Prospects enhance with experience and expertise and are always in demand 

Cons

• Very exhaustive education and training
• No mathematical skills, this profession is a big No
• Long working hours and a lot of responsibility is attached to the profession.