What is Actuarial Science?
In this article we are going to brief you about a brand new course which not many people know about & is coming into prominence gradually, which is, Actuarial Science.
Actuarial Science is science which applies mathematical & statistical methods to determine the risks in finance & insurance industries.
Actuaries are usually experts in analyzing financial impacts of unpredictable events. Actuaries benefit businesses as they enable them to make guided decisions with an unobstructed view of the likely possible future outcomes.
They help us in deciding as to how much money should one policy holder pay as premium or how much money should be given as returns or pension amount by the company.
The role of an Actuary:
- Helps in the calculation of insurance risks & premiums.
- to assess the financial impact of an uncertain future event
- To combine skills of statistician, & financier.
- Employs techniques of probability, compound interest, etc to forecast outcomes of future emergency & formulate solutions to reduce financial seriousness of events
- 10th +2 passed students getting 85 per cent marks in Maths / Stats
- BA (Hons.) in Insurance & Banking
- Sc in Actuarial sciences
- Bachelor of Science (B.Sc) in Actuarial & Financial Mathematics
- Post graduate diploma in Actuarial Science
- Sc in Actuarial science
- Masters in Insurance Business
- MBA in Actuarial science
- Master of Science (M.Sc) in Statistics (Actuarial)
The Institute of Actuaries of India (IAI ), established in 1944 conducts an entrance examination called Actuarial Common Entrance Test (ACET). Candidate needs to qualify actuarial science exams conducted by the IAI & should have 3 years of practical work experience. After passing all the exams they are eligible to be get admitted as an Associate Member of IAI society and a registered actuary.
Total number of subjects: 15
Number of Stages in course: 4
Stages of course: Core Technical Stage, Core Application Stage, Specialist Technical Stage & Specialist Application Stage
Subjects include: Financial Mathematics, Finance & Financial Reporting, Probability & Mathematical Statistics, General Insurance, Life & Health Contingencies, Statistical Methods, Business Economics, Financial Economics, Health & Care, Life Insurance
Duration of course: No fixed duration, ideally it gets completed in 3 to 4 years.
Actuaries are usually found in life insurance sector. But with globalization and liberalization of the Indian economy that has been changing.Now, they are found in various other sectors which are as follows :
- general insurance, health insurance
- reinsurance companies
- pensions & employee benefits
- investment consultancies
- risk management
- stock exchanges
Institutes providing courses in Actuarial Science
- Amity School of Insurance & Actuarial Science, Noida
- NMIMS University, Mumbai
- Delhi University
- Aligarh Muslim University
- The National Insurance Academy, Pune
- University of Pune
- Institute of Actuaries of India, Mumbai
Requirements of skills to become an Actuary:
- In -Depth knowledge of statistics & mathematics
- Problem-solving skills
- Good/Excellent communication skills
- Good business sense
- Possession of good modeling skills
Top companies who recruit Actuaries :
- Max Bupa Health Insurance
- Towers Watson
- Directorate of Postal Life Insurance
- PwC Actuarial Services India
- McKinsey Advanced Healthcare Analytics
Starting salary of a fresher in the field of Actuary can be between Rs. 3 lakhs to Rs. 5 lakhs per year
After gaining some good experience, say 5 to 6 years, you can earn a salary in the range of Rs . 10 to Rs 15 lakhs per annum. Industries usually offer packages ranging from 2.5 to 6.0 lakhs per annum.
After you become a graduate from IAI your salary is Rs 20 lakhs to Rs 30 lakhs per year.
For more such updates stay tuned with us. You can also follow us on social media sites.