A Great Career Option - Actuarial Science
Actuaries add value by enabling businesses and individuals to make better-informed decisions, with a clearer view of the likely range of financial outcomes from different future events.
The actuary’s skills in analysis and modeling of problems in finance, risj management and product design are used extensively in the areas of insurance, pensions, investment and more recently in wider fields such as project management, bankingand health care. Within these industries, actuaries perform a wide variety of roles such as design and pricing of product, financial management and corporate planning. Actuaries are invariably involved in the overall management of insurance companies and pension, gratuity and other employee benefit funds schemes; they have statutory roles in insurance schemes sponsored by government.
Actuaries are one of the highest paid professionals in the world, a freshly qualified actuary is likely to receive an average pay of around $ 70 thousand per annum in UK/USA and Rs.18 lacks in India. As a trainee the students can expect their stipend to start at Rs.50 thousand per month in India.
A degree in Actuarial Science is globally recognized and provides a zero unemployment profession. The cost of studying is also low. Truly this makes Actuarial Science a smart career.
In India, the Actuarial Society of India offers this course. Apart from that, courses from the Institute of Actuaries, London and Australia are also recognized in India. Any person with a high degree of aptitude for mathematics, statistics and finance can take up this course and become an Actuary.
The Actuary’s Role in Business and Public Policy:
Actuaries provide professional services in a wide range of business and social contexts.
* Investment and Financial Services * Life Insurance * Health Insurance * General Insurance * Employee Retirement and Benefit Plans.
Criteria for Becoming Student Member:
A person is eligible to be considered for admission as student member if he/she satisfies the following conditions:
1) Should have completed 18 years of age.
2) Should have attained anyone of the following Educational Standards:
(a) Passed 10+2 (H.S.C.) or equivalent with at least 85% in Mathematics/ Statistics.
(b) Graduate or Post Graduate in Maths / Stats/Econometrics
(c) Any Engineer/CA/CS/MBA (Finance))/ MCA
(d) Any member of Society of UK/US/Australia
(e) Fully qualified members of following Professional bodies such as
I. The Institute of Chartered Accountants of India(ICAI)
II. The Institute of Cost and Work Accountant of India(ICWAI)
III. The Institute of Financial Analyst of India.(IFAI)
IV. The Insurance Institute of India (III) passing with subjects 81-Mathematical Basis of Insurance and 82-Statistics
(f) A student of following actuarial bodies provided at least one subject has been passed from these bodies.
I. Society of Actuaries, USA
II. Casualty Actuarial Society, USA.
3. An application should be recommended by a member of professional body like such as Institute of Chartered Accountant of India, Institute of Cost & Works Accountant of India and Institute of Company Secretary of India.
Examination: The study course of ASI is divided into four stages.
Core Technical Stage: This consists of 8 subjects each with one paper of 100 marks [CT1 to CT8] and all are compulsory.
Core Application Stage: This consists of 2 compulsory subjects [CA2 to CA3]. CA1 consists of two papers[CA1 and CA2] whereas CA2 and CA3 shall have one paper each.
Specialist Technical Stage: This stage consists of 6 papers[ST1 to ST6]. The students would be required choose any two.
Specialist Application Stage: This again consists of 6 papers[SA1 to SA6] and the student has to clear anyone.
For an aspiring student, a high level of mathematics is required for course. So it is very in importance that a student mathematical is extremely good.
After clearing 3 to 4 papers, the candidates are normally absorbed as trainees(with a handsome stipend) in the insurance and other AMC application companies. Actuaries deal primarily in finance that has continuously increasing. The actuaries and actuarial trainees are employed by the following national and international organization:
* Insurance companies [be it private or public- life or general]
* Firm of Consulting Actuaries
* Authorities like IRDA, PFRDA & TAC.
* Asset liability Management Companies
* Large banks and Investment Firms like World Bank, ADB, etc
* Pension Banks and Employee Benefit Companies- likely to be opened in India soon.
* Large Capital & Turnkey Project Handling Companies
* Software Development Companies
* Actuarial BPO Companies
In addition to the above, employment opportunities are expected to arise in future in the offices of:
* Insurance Intermediates
* Pension Providers other than insurance companies.
* Education Institution (Providing Courses on Finance & Actuarial Science)
The insurance industry is in its nascent stage in India.
Important Websites: Actuarial Society of India - www.actuariesindia.org
Institute of Actuaries, London - www.actuaries.org.uk
Institute of Actuaries, Australia - www.actuaries.asn.org
Society of Actuaries, USA - www.beanactuaries.org
Insurance Regulatory and Development Authority, Hyderabad - www.irdaindia.org
The Actuarial profession has constantly been rated as one of the top four jobs in United States for the last 15 years “ by Almanac magazine USA.
A Great Career Option - Actuarial Science