Do you do paragliding? Are you into professional motorsports? Or are you a mountaineer? The answers don’t matter to anyone. But if you’re an actuary, answers to these questions become highly important. Actuaries play an extremely important role in the insurance industry in particular and is a prominent career in Mathematics. They analyze the potential risk of an investment and assess whether it will bring a net loss or gain to the company. In the context of the questions above, an actuary might well be interested in knowing about the lifestyle and hobbies of a person if the company is considering offering life insurance to him. The more big risk taker a person is higher becomes the risk of making a huge loss.
Actuarial analysts working with insurance industry use statistical models to analyze data. They calculate the probability of occurrence and associated costs with certain events, such as product failure, accidents, property damage, injury, and death. The results help to design and price insurance policies. They also estimate the likelihood of catastrophic events, such as hurricanes, earthquakes, pandemics, and terrorist attacks to assess the risk exposure of insurance companies.
Actuarial analysts working in financial services help design investment and pension plans. Those working as an independent consultant, help businesses reduce their risk exposure. Performing data analysis and statistical modeling is an important task for Actuarial analysts who help senior management or clients understand the risk/cost involved and take the appropriate financially viable decision.
Actuaries, although, come from different academic backgrounds, but they do share a common trait; their love for mathematics. During your training as an actuary, you learn to analyze data, evaluate financial risks, and communicate this data to non-specialists. Businesses are always exposed to risks and Actuaries help them minimize that risk. An actuarial career offers many employment options, including banking, insurance, healthcare, pensions, investment but also non-financial areas. A career as an actuary offers a wide range of opportunities and gives you the chance to apply your mathematical and statistical skills to real-life challenges.
Deciding on a career path is amazingly exhilarating, but a little frightening too. Actuarial work is especially for those who enjoy solving problems by analysis, mathematics and logical reasoning. For a successful career, however, the development of communication and management skills is also important.
Important Qualities for Actuaries
Analytical skills: Actuaries completely bank on their skills to identify trends and patterns in complex sets of data in order to effectively determine the factors that may have an effect on certain types of events.
Communication skills: Presenting complex technical matters to those without an actuarial background is one area which sometimes becomes quite tough. They must be able to communicate effectively through the reports and memos that describe their work and recommendations.
Computer skills: Actuaries are expected to know programming languages and to be able to use and develop spreadsheets, databases, and statistical analysis tools.
Interpersonal skills: It’s not a single person job. Actuaries act as leaders and if required, play well as a team member. They patiently listen to other people’s opinions and suggestions before reaching a conclusion.
Math skills: Actuaries compute risk using the principles of calculus, statistics, and probability. Thus, it is a notable career in Mathematics.
Problem-solving skills: Actuaries identify risks and develop ways for businesses to manage those risks.
Actuarial analysts are primarily work in the insurance industry. They often specialize in a particular area, such as health or life insurance. They are typically part of a team that includes business and insurance professionals such as underwriters and market research analysts. Actuaries are in high demand and that demand is set to increase by 18 percent over the next several years. The median salary for actuaries is $98,000. If you’re into advanced mathematics and are looking for a career in mathematics, this might be the right time to consider one in Actuarial Sciences.