What does a Actuary do?
|Citation||Retrieved in 2017 from BLS.org|
What does an Actuary do?
An actuary analyzes companies risk of financial costs and test the probability of an event that may affect an organizations financial security. They play a key role in the insurance industry and other businesses by reducing potential risk and instability. Actuaries use statistics, math, and financial theory to predict these factors. Actuaries also use advanced modeling statistics and software for accurate data.
How to Become a Actuary
To become an actuary one must earn a bachelor’s degree in mathematics, actuarial science, or statistics. Coursework usually includes economics, computer science, mathematics, business, and statistics classes. In addition actuaries must have good verbal and written communication skills as well as analytical skills. Actuaries are also required to get certified by passing a series of exams. However, as an entry level actuary you usually work under a group of experienced professionals and during this time you are a trainee that is groomed for the certification process.
Job Description of a Actuary
An actuary develops, prices, and evaluates financial cost or risks for businesses, insurance companies and other clients. They analyze statistical information such as disability, mortality, retirement rates, and accidents to predict liability payments of future benefits or any potential risks.
Actuaries help companies ensure payment of future benefits by ascertaining cash reserves and premium rates needed. A variety of people such as shareholders, company executives, government officials and others would expect an actuary to explain complex technical matters and help determine company policies. He or she would review, design and help administer pension plans, insurance and annuity plans, or policies by calculating premiums and financial soundness.
Actuaries use their expertise to assist businesses or clients maximize returns and manage risks with credit offerings or investment products. They analyze statistical information and other data to construct probability tables for cases pertinent to a company or client. One might be required to give testimony to public agencies affecting business on proposed legislation.
An actuary must have knowledge of economics, legal codes, government regulations, and agency rules. They should have the ability to read, understand and listen to information, and clearly communicate. They should remain technically current with pertinent job information and apply any new knowledge to his or her work. They should be able to think creatively by designing or developing new applications to the job. Some actuaries work in an office, however as an actuary consultant some travel may occur to meet clients.