Actuary

In this career guide, you’ll learn everything you need to know about actuarial science as a career, from roles and responsibilities, to work environment and roadmap to becoming an Actuary.

Who's an Actuary?

An actuary is a professional who assesses and manages the risk of financial investments, insurance policies and other ventures involving risk. Considering the probability of the venture and financial theory involved, actuaries assess the financial risks and its impact. Actuaries are mainly employed in insurance companies, banks and investment firms. The job of an actuary involves studying future events, especially those concerned with insurance and pension-related schemes. Actuaries work with facts, figures and people to solve problems of the business. Curious to know more about this career? Read below to know more.

Are you passionate about acturial science? Want to pursue it as a future career option? Explore a day in the life of a Actuary – Mr. Akash Rughani and Mr. Vignesh Mehta

Responsibilities

What will you do?

Developing policies.

Most actuaries are employed in the insurance sector. You will help companies develop different types of insurance policies by forecasting the likelihood of certain events and the impact of such events on the finances of the company.

Example: You will help a company draw up insurance policies against its assets to secure them for the future.

Helping companies and individuals make decisions.

You will give companies or individuals a clear view of the financial outcome of different events and accordingly help them make decisions.

Example: In life insurance, the amounts don’t just have to be beneficial for the company. They also have to be fair to the insured parties.

Partnering with government agencies.

You will partner with government agencies to create various public policies.

Example: Expecting mothers below the poverty line, in India, are given INR 6,000 to manage their expenses. An actuary will help the government arrive at this number.

Advising organisations and individuals in financial planning.

You will help companies make high value and risky investment decisions.

Example: If your company is planning to buy another company, you must consider the risk, growth and other factors to decide whether the purchase would be beneficial.

Suggesting solutions to reduce the negative effect of events.

You must provide individuals and companies with solutions to their finances that help them avoid any losses or high risks.

Example: A customer gets a car insurance from your company. You must calculate the premium amount the customer pays, and consider the possibility that the customer might have a car accident in the future whose cost the company will bear. The premium amount should be such that even if the company has to pay, it won’t make a loss.

Take the Mentoria career assessment test, to find out how well-suited you are as an Actuary.

Workplace

Where will you work?

Corporate/Startup

Most actuaries work in an office set up. You will work on guiding the company's financial decisions and investment opportunities. 

Insurance Companies

You could work with an insurance company, where you would help them draw up schemes and plans that will keep in mind various factors and outcomes to ensure the company doesn't face losses.

Home/Consultancy

You can start up your own consultancy, or work as a consultant for different clients. You would provide them with advice on risk management and investments. You could either set up an office or work from home.

Education

How do you get there?

This stream won’t help you make an entry into this field.

STEP 1: Class XI-XII/Junior College

Focus on mathematics, accounting and management during your high school or junior college.

STEP 2: Graduation

Actuaries in India are regulated by the Institute of Actuaries of India (IAI). You can begin by taking the Actuarial Common Entrance Test (ACET). The lowest educational requirement for its eligibility is Class 12 or an equivalent. The IAI requires you to pass their exams to become an actuary. However, a graduation degree like a three-year Bachelor of Commerce, along with other certifications like CA and others always give you an advantage. You will also be more qualified for good job positions while studying for the IAI exams. You can apply to universities in India and abroad or even look at distance learning programmes.

STEP 3: Land a Job

While you continue to appear for the IAI exams, you can take up an internship or work with financial institutions, a company’s finance department, an insurance company, etc. This is essential as you will need certain years of work experience to appear for the latter papers.

STEP 4: Pursue Actuarial Science

Clear the ACET and start your actuary course. You will have to clear all 15 actuarial exams and complete three years of work experience to become an actuary. These modules can be given one at a time or in different combinations. During your graduation, you can complete the first 4-5 papers. After that, you can take up an internship and eventually land a job. You can attempt the remaining papers while working. It is important to pursue these papers while working as work experience will help you learn the subject better.

Congratulations! You are now officially an actuary!

 

Thinking of a career as an Actuary? Take the Mentoria assessment test & talk to our career counsellors to get personalized step-by-step guidance for your future career path.

STEP 1: Class XI-XII/Junior College

If you wish to pursue science, go for the PCM combination – physics, chemistry, and mathematics – as mathematics is a must for the actuarial sciences.

STEP 2: Graduation

Actuaries in India are regulated by the Institute of Actuaries of India (IAI). You can begin by taking the Actuarial Common Entrance Test (ACET). The lowest educational requirement for its eligibility is Class 12 or an equivalent. The IAI requires you to pass their exams to become an actuary. However, a graduation degree like a three-year Bachelor of Science in Mathematics, along with other certifications like CA and others always give you an advantage. You will also be more qualified for good job positions while studying for the IAI exams. You can apply to universities in India and abroad or even look at distance learning programmes.

STEP 3: Land a Job

While you continue to appear for the IAI exams, you can take up an internship or work with financial institutions, a company’s finance department, an insurance company, etc. This is essential as you will need certain years of work experience to appear for the latter papers.

STEP 4: Pursue Actuarial Science

Clear the ACET and start your actuary course. You will have to clear all 15 actuarial exams and complete three years of work experience to become an actuary. These modules can be given one at a time or in different combinations. During your graduation, you can complete the first 4-5 papers. After that, you can take up an internship and eventually land a job. You can attempt the remaining papers while working. It is important to pursue these papers while working as work experience will help you learn the subject better.

Congratulations! You are now officially an actuary!

 

Thinking of a career as an Actuary? Take the Mentoria assessment test & talk to our career counsellors to get personalized step-by-step guidance for your future career path.

What skills would you need?

Analytical and Data Skills

Analytical and Data Skills

You will receive huge amounts of data from your client. This data will have to be analysed effectively so you can find ways that will help your client reach their customers is the best way possible. While it is true that the more data you analyse, the more insights you generate; analytical thinking will help you narrow down your search and find your key actionable items, thus saving you a lot of time and resources.

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Technical Skills

Technical Skills

As a marketer, you will work on different platforms to communicate with people. If you don’t understand how they work, you won’t be able to come up with the best strategy. You will also use various kinds of software like Google Adwords, MailChimp, SurveyMonkey, etc., during your promotions. You need to know how they work, and how to use them to your advantage.

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Attention to Detail

Attention to Detail

Working with eggs and embryos is a very tedious task. Every little detail matters when you are observing them. If you are good at giving attention to detail, then your job at the laboratory will be made much easier.

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Communication Skills

Communication Skills

It’s harder than ever to get people’s attention, what with so much information being thrown at them. But, people cannot resist a good story. Every good marketing campaign has a story to tell their customers and relate to them on an emotional level. Marketers who tell great stories through their marketing campaigns are always in great demand.

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Problem-solving Skills

Problem-solving Skills

Patients will be coming to you with different issues with fertility. You must be able to assess their problem, analyse the reason and work on coming up with a solution.

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Promotion levels

How do you make it to the top ranks?

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Trainee

As an actuarial trainee, you would be assisting the senior actuary with preparing reports and presentations. You would be trained on how to make basic calculations and financial projections.

 

Junior Actuarial Analyst

You would be working full time in an insurance, broking or investment firm as an employee. You will help your seniors in researching and developing models that help generate revenue and reduce risk exposure.

Senior Actuarial Analyst

At this level, you would be responsible for conducting high-level actuarial calculations and data analysis. You would have to analyse company data and create a strong financial plan by performing risk analysis. Analysing risk levels and preparing reports would be a major part of your job.

Manager

You will oversee the team of actuaries and train the juniors. Your job would be to set project goals and determining appropriate methods to achieve them. You would be required to develop models and tools that help the company evaluate its potential gains and losses through the proposed business plan.

 

VP/Director

You would have to develop new financial products that benefit the company while also balancing risk measures.  You will be required to participate in business development initiatives and would have to stay updated with the latest industry trends and development.

 

Chief Actuary

As a chief actuary, you would be responsible for proactively developing and executing the company’s business strategy by providing advice and guidance. You will express your views/ideas to the key stakeholders of the business look after the working of the actuarial team as a whole.

Scope

Pursuing your career locally VS abroad

If you study actuarial sciences in India, you would get a better understanding of the financial products in the Indian market. There is a good demand for actuaries in every field as with the use of technology, every business today is looking to expand and make their business profitable. Many gold jewellery schemes offered by premium jewellery brands are curated by actuaries who help the company maintain a fine balance between risk and revenue. In India, many brokerage firms, insurance companies, financial products and startups are mushrooming which make it easy for you to land a job in the country. You can opt for a master’s or diploma degree from universities such as Christ, Amity School or Actuary Institute of India. It would cost you between INR 1,50,000 – INR 5,00,000 depending on the course and university you opt for. While a graduate degree is enough to land you a job in India, you can further enhance your knowledge in the field by opting for masters or diploma. Such courses can also be done online and you don’t have to take a break from working to pursue them.

Studying actuary abroad will help you broaden your perspective and expose you to a completely new culture and people that will help you strengthen your thinking process. You can learn about various tools, financial products, etc., used there that will help you deepen your pool of knowledge.

A course abroad will cost you anywhere between INR 5,00,000 – INR 20,00,000 lakh depending on the university you opt to study from. You can opt to do graduation, a diploma, or a masters course. Top colleges to study abroad to play are the University of Regina, Laurentian University, University of Otago, etc. If you don’t plan to move abroad, then you can pursue an online certification course from universities abroad.

 

Payscale

How much would you get paid?

The exact number will depend on where you’re working, your education, skill-set and internship experience. But we can give you a general idea.


Specialisations

What are your career options?

Risk Analysis

Popularly known as a risk manager, risk analysts help businesses identify the financial risks involved in the existing as well as future projects. You will mainly work for financial institutions such as banks and investment firms. The risks identified may be operational, compliance or financial in nature. You will need a good business sense and the ability to solve complex numerical data.

Investment Analysis

Investment analysts conduct research; create financial models, reports stocks, bonds and other investment securities. You will provide information and recommendations to funding managers about various investment schemes and their benefits. You will primarily interpret complicated financial information, make informed recommendations, and write financial research summaries.

Underwriting

An underwriter is an individual working with an insurance company who determines the insurance coverage that will be provided to policyholders. This is done by assessing the risk undertaken by the company for insuring the policyholder. You will carry out risk assessments, prepare insurance policies, collect and analyse statistical data. You need good analytical skills, decision-making skills and a good eye for detail.

Insurance Analysis

An insurance actuarial analyst possesses good statistical skills and knowledge to design and price insurance policies. You will calculate the cost of the policy and determine its premium for policyholders. You also need to give the policyholders a brief idea of how much returns they can expect during the time of claim. You must be well-versed with calculations, statistics, probability and analytical skills to look at the factors that influence the outcome of several uncertainties.

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