Introduction
An Actuary is significant to every Business venture. This is because all businesses have a common goal of making a profit. Their job entails helping organizations maximize this goal while minimizing losses.
There are many professions in the world today. These professions fall into various categories. Actuarial Science is an outstanding professional in the world of Business.
To find out more about these distinct professionals, be sure to read this to the end.
Who is an Actuary?
An Actuary is a professional in the business world. They use their knowledge in mathematics, statistics, finance, and also business to prevent potential problems. They do this by studying future uncertainties that can be negative to a company’s financial status.
The core of their job is reducing financial risk for businesses. So they evaluate the plans and proposals of businesses and also give financial advice.
Their job description is relevant to different businesses. This means that they can work in several places. These include Insurance companies, Banks, Hospitals, and also corporate investment firms, etc.
They must have a very good understanding of probability. Why is this so?
Their job description requires them to foresee the probability of events occurring in the future. They also find out the impact of these on the company’s finances.
An Actuary should be a graduate of Actuarial science. However, knowledge in the following is equally important:
- Actuarial Mathematics
- Statistics
- Finances and also business management, etc.
Responsibilities of an Actuary
The duties of an Actuary include but are not limited to:
- Analyzing data to predict future uncertainties.
- Giving professional advice on what a company should avoid and also on what a company should invest in.
- Using mathematical knowledge to assess plans.
- Using mathematical knowledge to state if plans are professional or not.
- Preparing and also presenting reports on data analysis.
- Monitoring a company’s investment over time.
- Supervising junior staff.
- Training students in Actuarial science.
- Helping organizations know profitable investments to engage in.
Qualifications
To practice as an Actuary in the United States, the following are necessary:
- A Bachelor Degree in Actuarial science or ralated field. This should be with a minimum of second-class upper division.
- A good understanding of Mathematics, Statistics, Economics, and also Finance, etc.
- Membership in any of the following bodies:
- The American Society of Pension Actuaries.
- Society of Actuaries (SOA).
- The Casualty Actuarial Society (CAS).
In addition to these, other necessities for practice include;
- Good knowledge of mathematics and also mathematical theories
- Report writing skills
- Good communication skills
- Good analytic skills
- Time management skills
- Teamwork
- Documentation skills and also critical thinking skills
- Presentation skills
- Programming skills and also computer skills
Work Environment
The services of an Actuary are relevant in almost every business. And can therefore work in several places, examples are;
- The Government
- Academia
- Insurance Companies
- Hospitals
- Private businesses
- Investment companies, etc.
The work environment is usually an office setting. And also most times, work requires that they work together with other professionals. Actuaries are expected to dress corporately during work hours. The work schedule is exclusive of weekends.
Salary
The job of an Actuary attracts good pay. For starters, it is between $45,000 to $55,000. However, an Actuary can earn up to $111,030 yearly.
Salary increment is based on experience and education.
Career Path
The Actuarial Science Career is continuously on the rise. A Bachelor’s degree holder can proceed to get a Master’s in Actuarial science. Getting a PhD is the peak of the career. With this, an Actuary can work as a consultant.
At this point, he or she is no longer under a boss but oversees the duties of other Actuaries. He or she can even crosscheck the verdicts and reports of Actuaries in other companies, based on consultation.
Conclusion
An Actuary is an amazing problem solver. And are also hard workers and disciplined professionals. They help organizations prevent losses and achieve their financial goals. And they also offer professional advice after a series of analyses and brainstorming.
Actuaries find significance in various places. This depends on their levels of education and also experience. A PhD certification is the highest education level. A Consultant Actuary is the highest work level. In addition, a career as an Actuary is a noble choice. If one has an interest in helping others prevent mistakes and make better decisions, this is a fulfilling profession. However, one must be a lover of mathematics and statistics.
