Actuarial Science as a Career

Actuarial Science

Actuarial science is related to insurance and evaluation of assets mainly related to where companies which provide insurance cover to policy holders in case of any eventuality like accidents, hospitalization, etc.
The insurance policy holders, whether it is medical insurance with a mediclaim policy or health insurance through any of the health insurance companies in India or abroad such as ICICI Lombard or Bajaj Allianz etc; are required to pay a fixed amount as installments at regular intervals and they get this money back in the event of any untoward incident as in the case of Life Insurance or upon the maturity of the policy.

The amount of money in a medical insurance policy or mediclaim policy or in health insurance or life insurance which a holder should pay as premium or what sum should be given as pension amount or returns by the insurance company in india or abroad is what is decided by actuary. They calculate insurance risks and premiums. The job of an actuary is to assess the financial impact of uncertain future events. They look at the financial aspect of such catastrophes.

An actuary has to combine the skills of a statistician, economist and financier and employ techniques of probability, compound interest, law, marketing, management etc to predict the outcome of future contingencies and design solutions to lessen the financial severity of such events.

Actuarial profession was formally established in 1848, with the formation of Institute of Actuaries, London. In India, traditionally actuaries were found only in the life insurance sector but now with the opening up of the economy they are wanted by non life insurance companies in India, banks, stock exchanges, private and government agencies and this is one field where demand exceeds supply.

The Actuarial Society of India (ASI), the only professional body of Actuaries in India was formed in 1944 and was admitted as a member of the International Actuarial Association (IAA), an umbrella organization to all actuarial bodies across the world, in 1979. It was registered in 1982 under registration of Literacy, Scientific and Charitable Societies Act XIII of 1960. Its objectives include the advancement of Actuarial profession in India, providing opportunities for interaction among members of the profession, facilitating research, arranging lectures on relevant subjects and providing facilities and Guidance to those studying for the professional

Actuarial Examination:

The Institute of Actuaries Of India was initially started as a non-examining body when Actuaries used to get qualified from Institute of Actuaries or Faculty of Actuaries of UK. The Institute of Actuaries of India initially started conducting Entrance Examinations in India for students of Institute of Actuaries, UK. In 1989, it started conducting examinations for its Indian qualification up to Associate ship level, and later in 1992, Fellowship level exams. The Institute has been following the UK pattern of examinations since November 2000 with an eye to be a part of global standards set by the International Actuarial Association (IAA).

To become an actuary one must be a Fellow of a recognized professional examining body like the Actuarial Society of India (ASI), Mumbai or the Institute of Actuaries, London. The work of an actuary involves a lot of number crunching and the nature of work is quite tedious, nevertheless it offers rewards in terms of intellectual challenge, status, job satisfaction and earnings. As their judgment is the basis of decision making for many business activities, their career paths often lead to upper management and executive positions.

Eligibility:

The Actuarial Society of India and Institute of Actuaries, UK are professional examining bodies Which conduct certificate, associate-ship. One should be good in mathematics and statistics, assessment. Post Graduates or M.Sc in actuary or M.Sc in Actuarial Science are in great demand.

Job Prospectus and Career Options:

Health Insurance in India is growing rapidly and with medical awareness, medical insurance through various mediclaim policies is becoming a primary source of income for Insurance companies in India as well providing job opportunities through private sector companies such as ICICI Lombard or Bajaj Allianz etc; and it can be highly paying at times