“A business professional who deals with the measurement and management of risk and uncertainty. Actuaries provide assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms.” – Wikipedia.
Too technical? No Worries, let me give it a spin.
Well, being an actuary is very similar to being an “accountant” except an accountant emphasises the financial records of the past. In contrast, an actuary has a broader role in defining future policies and accessing future risks considering the current economic conditions. This is the easier way of understanding it.
Remember that term insurance that you bought? How do you think the company formulated that by paying 50 INR a day, you will get insurance worth INR 10,00,000. Well, that’s a policy decision made by an actuary. Remember the sudden decrease in FD rates of all banks? How were those rates decided? Well, again, some actuary at work.
Actuaries are those cool kids in the insurance/finance world who play a crucial role in insurance companies and banks, helping them book profits and avoid risks. Holding expertise, actuaries calculate premiums, rate the plans, access, and determine the financial risks within organisations.
Being an actuary might not seem like an incredible profession in your circles, but trust me, a simple look at the growth actuaries have achieved, or their salary packages will lure you into becoming an actuary. This article will tell you everything about being an actuary, the roles and responsibilities, the scope, the salaries, what to study and how to apply. So stay tuned.
Skill Set Required To Gain That Actuary Job
Every job description in the world these days asks for excellent communication skills. You have got to learn to talk right; you will have to learn to listen and talk sensibly.
But along with excellent communication skills, here are a few other soft skills we found as standard requirements across 529 actuary job posts.
Soft Skills Required to Become an Actuary
|You need to be detail-oriented,|
|You need to have excellent communication skills,|
|You need to have great analytical skills,|
|You need to have excellent problem-solving skills|
Hard Skills Required To Become An Actuary
- Amazing Math knowledge. Math has to be your best friend. You should be able to calculate correct and calculate fast.
- Statistical Analysis skills. You shouldn’t be intimidated by data. In fact, you should see data as a challenge, as a road to insights.
- Predictive analysis skills. You should be able to predict the future course of events and how will they affect your company’s business
- Excel. For obvious reasons
- Big data platforms. The data in large organisations might be stored in different formats.
- Business sense. You need good knowledge about the business and the industry.
Good to have skills
- Programming language – If you can convert your logical ability into code, well, that makes you an irreplaceable asset.
- For Bachelor’s Course: Students should have mathematics, commerce, and economics as their main subjects in class 12.
- For Master’s Degree: Students must have a relevant bachelor’s degree in the same field.
- For Research Course: Students should hold a master’s degree in the field of actuary.
- MBA in finance or other similar qualifications.
How To Become An Actuary?
Let’s talk precisely. Becoming an Actuary in India is not a child’s play. In fact, aspirants need to clear a pool of examinations required to qualify for the post.
If you have cleared your higher secondary education (Class 12) and aspire to become an Actuary, here are the next steps you must consider right away!
- Under-Graduate Level Preparation: Herein, you can opt for a diploma in actuarial science or a BSc in actuarial science. For top-level preparation, check in the ACCA courses at IMS proschool. Aspirants can go for PCM with statistics in their higher secondary education for UG level eligibility purposes.
- Post-Graduate Level Preparation: Upon completion of the UG degree, a graduate can move on with further studies in the same field. This calls for MSc in Actuarial Science or MBA in actuarial science. For PG level eligibility purposes, students must have a bachelor’s degree in actuarial science or any such related field from a renowned university.
The course is all about implementing mathematical and statistical techniques to call off the day-to-day issues in Banking, insurance, and other financial sectors.
- Obtain A Bachelor’s Degree: Now, as the entire story moves around mathematics, it is imperative to gain a bachelor’s degree in business administration, mathematics, actuarial science, or statistics. Ideally, B.Sc Maths and B.Sc Stats are recommended courses that will provide you with a solid foundation in math, statistical concepts, analytical and problem-solving skills, and figures, which are all critical in Actuarial Science. Other courses, such as B.Sc. (Actuarial Science) and M.Sc. (Actuarial Science), allow you to work directly in this field (Actuarial Science).
- But in case you have done anything else except B.Sc. (Maths) or B.Sc. (stats), you can cross the bridge quickly, using the ACCA course taught at IMS proschool. The course is ideally designed to help students attain lucrative job offers easily.
About The Course,
IMS Proschool is one of the oldest organisations in the space of ACCA courses. It has taught over 3000 students and helped them secure jobs lucrative jobs.
IMS proschools offers you a full-service ACCA course covering everything from basic definitions to applications. Financial management, Wealth management, Statistical analysis, mathematics. IMS proschool can make you a pro at all of these!
- Take the Common Entrance Exam for Actuaries (ACET): It is necessary to pass the Actuarial Common Entrance Test to be a member of the Institute of Actuaries of India (IAI) and a professional Actuary (ACET). You can apply for the entrance exam right after finishing your 12th grade. The ACET is a 100-point online test that is broken into two halves. Mathematics, Statistics, and Data Interpretation are covered in Section 1, whereas English and Logical Reasoning are covered in Section 2.
Bonus: The IAI (Institute of Actuaries of India) directs the training and education of Actuaries in India. Upon clearing the ACET (Actuarial Common Entrance Test), students become a member of the IAI. The results denote that a student is eligible and instilled with all the skills required to become a recognised actuary.
The Essential Stages
Because actuarial science is a professional study, you must pass several exams and stages in order to pursue a career in this sector. The IAI administers both written and practical examinations.
Collectively, there are 15 papers in the course that are further divided into four stages:
- Stage 1: Total 9 papers of Core Technical (CT)
- Stage 2: 3 papers for the Core Application (CA).
- Stage 3: Choose any 2 of the 8 papers of Specialist Technical (ST)
- Stage 4: Choose any 1 of the 6 papers of Specialist Application (SA)
Chief Responsibilities Of An Actuary
The traditional responsibilities of Actuaries in general and life insurance companies consist of designing policies, pricing policies, monitoring fund adequacy, coming up with fair bonus rates wherever required, ensuring solvency margin, calculating insurance business, and other risks such as loss of profit, legal liability, etc.
Moving forward, an actuary can either work in partnership or work independently.
Depending on the circumstances, the duties of Actuaries differ from one another. In fact, it keeps changing under changed conditions.
In a nutshell, the chief functions and responsibilities of an Actuary are listed below for a clear picture.
- Creating Financial Future Sense: Actuaries are addressed as experts assessing the monetary impact of uncertain events the following day. They take robust financial decisions by
- Determining the past
- Calculating the future
- Evaluating the risks involved
- Communicating in financial terms
- Making Informed Decisions: Actuaries add tremendous value by allowing individuals and businesses to make informed and better decisions. This becomes possible because actuaries use financial modelling skills and predictive analysis to predict and give a clear picture of the potential financial estimates and outcomes of different future events. In fact, Actuaries in insurance firms help businesses to calculate the risks of a particular plan.
The skill of modelling problems in finance, analysis, risk management, and product design in actuaries are implemented extensively in the investment area, insurance, pension, etc. At present, such skills are becoming more evident in the banking, project management, and health care sector.
- Balancing Everyone’s Interests: Actuaries balance their title role in business management provided that they protect the financial interests of the public. As promised by the pension schemes and insurance companies, the duties of Actuaries involve protecting these legal responsibilities. Actuaries play an important role in both established and emerging businesses. Working in diverse aspects of a business, actuaries deal in planning and regulating insurance premiums, monitoring financial investments, estimating pension plans, etc.
All in all, actuaries play a crucial role in strategic business decision-making. Several other industries where actuaries contribute their ability include the investment management sector, consultancy, corporate finance, banking, and healthcare. Generally, actuaries use extensive statistical analysis as they need to look into large amounts of data associated with costing and recent market trends. Considering all these functions, there is no doubt why the demand for this particular job role stays at its peak.
Career Opportunities For Actuaries In India
The demand for actuaries in India keeps growing at an unprecedented rate with a surge in the Indian financial market. Because numerous banks are setting up joint ventures to float insurance firms, this number of actuary demand is simply going to multiply with time.
On a global scale, actuaries not only take stock of pensions, standard insurance policies, reinsurance, etc., but they play a crucial role as investment advisers, consultants, and risk managers. Depending upon the sector, actuaries look into financial valuations, product pricing, peer reviews, etc.
At present, being an actuary continues to be one of the top career options globally. Speaking about the period ahead, the statistics, tweets, and demand for actuaries estimate lucrative openings for actuary graduates in the health Insurance firms, general insurance firms, back offices, and actuarial consulting firms.
The Indian Picture
How about we talk in figures? Here is a snapshot of the recent actuary job openings in India. Needless to say, the numbers state the future of actuarial jobs in India.
Actuarial science is a practical and highly gratifying alternative for those interested in turning their understanding of risk assessment into a full-time job. Looking back over the years when private insurance firms were set up in India, the demand for actuaries was boundless. Today, although the requirements of Actuaries in direct insurance companies are restricted for young students, the opportunities keep stretching beyond the traditional domain of insurance firms.
The Expert Advice
Sanjay, CEO at IMS proschool advises graduates to opt for the course if they love math!
he adds how the field is new and foresees incredible opportunities in the immediate future. Unlike the traditional defined insurance jobs, the role of actuaries is expanding over vast industries at present. A maximum part of the actuarial job role revolves around high-level statistics and mathematics barring the one taught at the school level. Sanjay further adds if students wish to take up this course as their career, it’s time to gear up for a real struggle in the early stages of their career.
Diverse Actuary Job Roles
Upon completion of the course, aspirants can immediately kick-start their career in this lucrative field. Ideally, there are 12 types of Actuary Job profiles wherein graduates can choose to become Actuarial Associate, Senior Executive Actuarial, Financial Adviser, Actuarial Product Manager, Analyst, or Consultant, etc. If you are still wondering about the job role under these designations, below are a few in brief!
|Life Insurance Actuary||Corporate Actuary|
|Pricing Actuary||Investment Actuary|
|Health Insurance Actuary||Forensic Actuary|
|Pension and Retirement Actuary||Property and Casualty Actuary|
A SneakPeak Into A Day In The Life Of An Actuary
Actuary Salary Packages In India
Typically, actuaries can secure brilliant job designations in diverse fields. In India, actuaries work in sectors including:
- Health Insurance
- Risk Management
- Pension Funds
- Reinsurance Companies
- Life Insurance
- General Insurance
Considering the diversions in sectors and job profiles, the salary packages of an Actuary differ from person to person.
While this is an average Actuary salary in India, the pay depends on a range of factors including your skills and experience. Below listed is an average annual salary for Actuaries in India.
Salary In Terms Of Organization (Average Annual Salary)
- Government: Rs 5,13,600
- Private: Rs 10,17,365
Salary In Terms Of Specialization
- Senior Executive Actuarial: Rs 13,30,000
- Actuarial Product Manager: Rs 11,50,000
- Consultant: Rs 9,40,000
- Analyst: Rs 13,00,000
- Financial Adviser: Rs 6,30,000
- Actuarial Associate: Rs 6,28,820
Salary In Terms Of Gender
- Male: Rs 7 lakh
- Female: Rs 5 lakh
Salary In Terms Of Experience
- Fresher: Rs 5 lakh
- Experienced: Rs 15 lakh
Tabulated below are the most recent jobs for actuaries posted on different job sites for your reference.
Most Recent Jobs For Actuaries Freshers Posted On Naukri.com
|Actuarial AnalystCare Health Insurance (Rating – 4.0) (124 Reviews)0-2 Yrs1,00,000 – 4,50,000 PA.Gurgaon/Gurugram|
|Actuary – B.Sc and M.Sc (Statistics and Math) FresherKotak Life (Rating – 3.9) (1267 Reviews)0-2 Yrs1,50,000 – 3,50,000 PA.Mumbai (All Areas)|
|Opening in Actuarial Team- MIS and ReportingCare Health Insurance (Rating – 4.0) (124 Reviews)1-4 Yrs3,00,000 – 8,00,000 PA.Gurgaon/Gurugram|
Most Recent Jobs For Actuaries Freshers Posted On LinkedIn
|Actuarial AnalystM/s Radgo & Company – Actuaries & Consultants Mumbai, Maharashtra|
|Actuarial ConsultantSky Consulting Inc. Mumbai, Maharashtra, India Remote|
|Consultant – ActuarialGenpact Gurgaon, Haryana, India On-site|
Top Recruiting Companies For Actuaries Freshers Posted On Glassdoor
|Aon3.9★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Insurance Agencies & Brokerages|
|Mercer3.9★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Consulting|
|WNS3.5★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Staffing & Outsourcing|
|Swiss Re4.2★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Insurance Agencies & Brokerages|
|EY3.9★★★★★ Location:IndiaGlobal Company Size:10000+ EmployeesIndustry: Accounting|
|Willis Towers Watson3.9★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Consulting|
|MetLife3.9★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Insurance Agencies & Brokerages|
|PwC3.9★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Consulting|
|AXA XL3.8★★★★★ Location: 3 office locations in IndiaGlobal Company Size: 5001 to 10000 EmployeesIndustry: Insurance Operators|
|AIG3.7★★★★★ Location: IndiaGlobal Company Size: 10000+ EmployeesIndustry: Insurance Operators|
You should also research your preferred nation’s SOL (Skilled Occupation List). This list gets updated every year by the Office of Immigration of all specific countries, where they list the Occupants required for that specific occupation.
There is a three-fold increase in demand for skilled actuarial science professionals compared to supply in India. One of the reasons for such a disparity between supply and demand is a lack of knowledge among students. In India, actuarial science has a huge potential. According to statistics, India has only 9000 actuaries out of 1.3 billion people. Actuarial science is one of the highest-paid fields, and a fresher in this subject might earn significantly more than a fresher in other fields.
If you enjoy mathematics, statistics, and logical reasoning, actuarial science is the course for you. By enrolling in ACCA courses, IMS Proschool can help you land a lucrative job offer quickly.
Good luck with the bright future!