An actuary is a respected individual in the society. This is because he helps people and companies find solutions to issues ranging from finance, credit and insurance. Majors in actuarial science are no longer overlooked and underrated. They are currently enjoying one of the most secure and well-paying jobs in the US.
What Actuaries Do
The primary goal of actuaries is to manage risks in a highly quantitative way. You may find them doing the following tasks on a daily basis;
- Calculating or estimating the pension benefits for those who have retired.
- Pricing products and developing hedging strategies for various annuities.
- Assessing and calculating the financial losses resulting from natural catastrophes such as hurricanes, hailstones and earthquakes.
- Working with chief risk management officers to design efficient risk control environments.
- Analyzing statistical data such as accident rates, frequency of natural disasters and number of risks on certain insurance policies.
- Preparing presentations and reports.
- Modeling statistical data in computers to determine potential risks.
- Setting premium rates.
How to Become an Actuary
Those who want to become actuaries should have at least a bachelor’s degree in actuarial science. This program usually takes three to four years. Another approach is to complete a three or four-year course in finance, economics or commerce. Those who enroll for these programs must learn financial mathematics, probability, mathematical statistics, models, general insurance, business economics and financial economics. Aspiring actuaries are also required to apply for memberships in various professional bodies and pass the exams administered. Being a member of a professional body increases job prospects and opens more doors for career growth. The most popular professional bodies that govern actuaries are Society of Actuaries(SOA) and Casualty Actuarial Society’s (CAS).
Individuals should also develop a certain set of skills to succeed in their careers. These skills include specialized analytical and project management knowledge, solid communication skills, strong computer skills, great business sense and good problem-solving skills.
Resource: 20 Best Online Master of Finance Degree Programs 2016
Career Prospects for Actuaries
There is currently an increasing demand for actuaries in the United States. The increasing demand is due to the change of perspective among companies, drastic shifts in demographics and rising number of risks. The extreme shifts in demographics and increasing number of risks will keep actuaries gainfully employed for a longer time than ever witnessed. According to the Bureau of Labor Statistic, the employment rate for actuaries is expected to grow by 18 percent over the next 10 years. This rate is considered faster than the national average rate.
Where Actuaries Work
Almost 66 percent of actuaries work in the insurance industry. 15 percent work as private consultants, while 10 percent work in corporate management. Actuarial vacancies experience the largest year-on-year change than any other specialism in the insurance industry. The industry will fuel the highest job growth rates for actuaries over the next 10 years. Life insurance will experience the highest growth rates followed by health and auto insurance.
Salary
Actuaries earn an average salary of $97,070 per year. They are among those who are well compensated in the country. Experienced actuaries have the potential to earn even $250,000.
Actuaries earn lucrative salaries, enjoy great working environments and have huge job prospects. You might consider being an actuary if you want to enjoy the benefits discussed above.
