Saturday Brain Storming Thought (219) 20/04/2024

ACTUARY

An Actuary is a professional with advanced mathematical skills who deals with the measurement and management of risk and uncertainty

Skills needed to become an Actuary

1) Mathematics

a) Calculas

b) Statistics

c) Financial Math

d) Actuarial Math

2) Communications

a) Written

b) Oral

c) Explaning

d) Teaching

3) Business

a) Finance

b) Economics

c) Accounting

d) Business Law

4) Soft Skills

a) Integrity

b) Creativity

c) Problem solving attitude

d) Self Motivation

e) Love of learning

f) Understanding of human behaviour

Actuary Analysis

1) Actuaries analyse past and present data to solve real business problems

2) A lot of Actuaries work is about risk management

3) Assessing how likely an event might be and the costs associated with it

4) Actuaries predict and measure emerging risks and then help to reduce them, putting financial safeguards in place

Stages of Actuary

1) Core Technical

2) Core Application

3) Specialist Technical

4) Specialist Application

Scope of work for Actuaries

1) Insurance companies

2) Commercial banks

3) Investment banks

4) Retirement funds

5) Government

6) Consulting firms

Duties of Actuary

1) Ratemaking & Pricing

2) Loss reserving

3) Reinsurance

4) Catastrophe modeling

5) Data

6) Predictive modeling

7) Enterprise risk management (ERM)

Task & Responsibilities of Actuary

1) Creating, maintaining and analyzing custom projection models

2) Developing policies and strategies to protect a company from financial risk

3) Coordinating with other professionals to gather accurate and valuable data

4) Estimating the likelihood and cost ofcan event, such as natural disaster

5) Using spreadsheets to track and report on data projections

6) Using statistical skills to create analytics and charts

7) Reporting on findings to executives and other employees

Steps to an Actuary Career

1) Earn an actuary degree

2) Accumulate actuarial experience

3) Join a professional association

4) Pursue associate level certification

5) Complete fellowship level certification

6) Maintain continuing education requirements

Advantages of Actuary

1) Six figure salary

2) The BLS projects jobs for actuaries will grow much faster

3) The many specialization options in the field give actuaries many paths for career advancement

4) Actuaries blend statistics and business, which give them many options for career changes

Disadvantages of Actuary

1) The certification process to become a professional actuary takes years and requires up to 10 certification exams

2) In addition to certification, actuaries may need a two years masters degree for many roles

3) As a risk management specialist, Actuaries need to make exceptional predictions and stay on top of trends

4) The dangers of miscalculating risks can be high

5) While actuaries work as a part of the team, much of their job requires analyzing data alone, which can be isolating for some

Future of Actuaries

1) Robotics

2) Actuarial talent assessment

3) Automating memo generation

4) Creating an irresistible place to work

5) Data wrangling automation

COMPILED BY:-

Er. Avinash Kulkarni
9822011051

Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer