What kind of actuaries are there

Primary responsibility of an enterprise risk management actuary is to consolidate all the risks which are faced by the company and determine the financial impact due to those risks. Their skills are not just limited to insurance companies.

One of the examples of an ERM actuary is to determine the cost and the potential impact of negative reputation on the organization. Any negative reputation would result in lower sales, lower revenue and legal charges.

Depending upon the severity, loss of reputation can even force the company to go out of business. The ERM actuary recognizes this and encourages the company to keep enough capital to survive such situations. This is very important for insurance companies as thousands of people rely on them to collect insurance claims when the time comes. Enterprise risk management can prevent such companies from going out of business and protect their policyholders.

Investment actuary is an actuary that either manages investments directly or provides an advice on how to manage investments. As with all the actuaries, their main focus tends to be on risk management. Investment actuaries work in areas like investment banking, investment consulting, investment management and retail financial advice. They are also involved in day to day activities in capital markets, derivative markets, forex and property markets. Investment actuaries have strong analytical skills and deep understanding about interaction between assets and liabilities which is very important while advising or managing assets backing insurance and pension liabilities.

Finance actuaries work in areas like corporate finance, mergers and acquisitions, capital management and financial reporting. They have strong understanding about the working of insurance companies and other financial institutions.

Finance actuaries and financial analysts have very similar responsibilities as they both are involved in analyzing the data and reducing the risk of financial troubles. However, finance actuaries work closely with insurance companies whereas financial analysts are more focused on investment strategies. The job responsibility of a finance actuary includes gathering data, performing calculations, evaluating investment options , determining the likelihood of any specific event occurring and recommending policies or investments to other people.

Pricing actuaries are statisticians who primarily work for financial industries or insurance companies. They use their analytical and math skills to determine the price of the products by analyzing data and calculating risks.

These types of actuaries collect and analyze statistical data to determine the claim payout in event of death, serious injury, property loss, disability or claims resulting from any casualties. They use this data to develop profitable yet competitive product pricing. The decisions made by pricing actuaries should be high enough to cover the expenses and cost associated with insurance claims and to maximize the returns for insurance company.

They are also involved in developing the policies and plans for new products and designing financially sound insurance and pension plans. Valuation actuaries are responsible for calculating the reserves for life insurance and annuity companies, calculating the liabilities for financial statements and determining the valuation of the companies involved in mergers and acquisitions. They are definitely more difficult than your typical math exams in school.

As an actuarial student, you must be prepared to put in months of studying and hard work because that is the amount of effort required to pass these actuarial exams. Difficulty: For most people the CPA exams are easier than actuarial exams. Actuarial exams test more difficult concepts and get harder as the candidate progresses through them.

Number of Exams: Actuaries need to pass 10 exams in order to be fully qualified, whereas accountants have to pass 4 exams within 18 months.

On a daily basis, Actuaries provide advice to clients on a contract basis, working as a consultant. They design, review and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums. Secondly, IAI conducts seminars or events each year which are very good for holistic learning and networking.

The purpose of this exam is to develop knowledge of probability. The application of these tools to problems encountered by actuaries is emphasized. A thorough command of calculus and probability topics is assumed. Because there are different types of practice areas, including health, life, pension, and casualty, internships may be helpful for students deciding on which actuarial track to pursue. Most entry-level actuaries start out as trainees.

They are typically on teams with more experienced actuaries who serve as mentors. At first, they perform basic tasks, such as compiling data, but as they gain more experience, they may conduct research and write reports.

Beginning actuaries may spend time working in other departments, such as marketing, underwriting, and product development, to learn all aspects of the company's work and how actuarial work applies to each one. Most employers support their actuaries throughout the certification process. For example, employers typically pay the cost of exams and study materials. Many firms provide paid time to study and encourage their employees to set up study groups.

Employees usually receive raises or bonuses for each exam that they pass. Advancement depends largely on job performance and the number of actuarial exams passed. For example, actuaries who achieve fellowship status often supervise the work of other actuaries and provide advice to senior management.

Actuaries with a broad knowledge of risk management and how it applies to business can rise to executive positions in their companies, such as chief risk officer or chief financial officer. Analytical skills. Actuaries use analytical skills to identify patterns and trends in complex sets of data to determine the factors that have an effect on certain types of events. Communication skills. Actuaries must be able to explain complex technical matters to those without an actuarial background.

They must also communicate clearly through the reports and memos that describe their work and recommendations. Computer skills. Actuaries must know programming languages and be able to use and develop spreadsheets, databases, and statistical analysis tools. Interpersonal skills. Actuaries serve as leaders and members of teams, so they must be able to listen to other people's opinions and suggestions before reaching a conclusion.

Math skills. Actuaries quantify risk by using the principles of calculus, statistics, and probability. Problem-solving skills.

Actuaries identify risks and develop ways for businesses to manage those risks. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. Employment of actuaries is projected to grow 18 percent over the next ten years, much faster than the average for all occupations.

Actuaries will be needed to develop, price, and evaluate a variety of insurance products and calculate the costs of new risks. More actuaries will also be needed to help companies manage their own risk, a practice known as enterprise risk management. Actuaries will help companies avoid, manage, and respond to any potential financial risks across all areas of their business operations.

This analysis helps companies adjust their business or investment strategies to achieve economic returns and respond to new financial regulations and requirements. Insurance companies will need actuaries to analyze the large amount of information, such as medical or property data, collected from consumers. The increase in available data will allow insurance companies to better develop new products, set competitive prices, predict consumer behavior, and make more accurate projections of future risks and costs.

In addition, health insurance companies will require more actuaries to help evaluate the effects of changing healthcare regulations and guidelines, expand into new insurance markets, and offer products to new customers.

Job opportunities should be somewhat competitive for entry-level applicants because the number of students sitting for actuarial exams has increased in the past few years. Students who have passed at least two actuarial exams, have had an internship while in college, and have strong analytical and business skills should have the best job prospects for entry-level positions. For instance, some actuaries move from pension firms to work in investment banks or asset management firms, or into large corporations.

Enterprise risk management is a developing area offering opportunities for senior actuaries to progress to board-level positions, such as chief risk officer CRO. Actuaries may choose to move into product development, marketing and senior sales roles where the complexity of the product and value of sale require a consultative sales approach.

It is also possible to pursue particular areas of interest such as genetics, energy supply or climate change. Jobs and work experience Search graduate jobs Job profiles Work experience and internships Employer profiles What job would suit me? Job sectors Apprenticeships Working abroad Gap year Self-employment. Search postgraduate courses Funding postgraduate study Universities and departments Study abroad Conversion courses Law qualifications. What can I do with my degree?

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View all accountancy, banking and finance vacancies. Add to favourites. As an actuary you'll learn how to analyse data, evaluate financial risks and communicate this information to non-specialists An actuary evaluates, manages and advises on financial risks. Types of actuary Actuaries work in these areas: banking corporate finance investment management life, healthcare and general insurance pensions.

Salaries vary according to location, and are usually higher in London. Increments are usually paid for examination success. There is a wide range of salaries for experienced actuaries, but high financial rewards and excellent benefits packages are common. Income figures are intended as a guide only. Working hours You should expect to work overtime, but not necessarily at the weekends or in shifts. What to expect Self-employment and freelance work are possible but very unusual, as most actuaries are employed by large financial institutions.