An actuary has a job that is very important to the insurance industry and other businesses because they analyze the companies risk of financial costs and test the probability of an event. They would assist in reducing the risk of financial cost by the application of statistics, math and financial theory. They use advanced modeling statistics and software for accurate data.
How to become a Actuary
An actuary usually needs a bachelor's degree. They would require a lot of experience and knowledge in mathematics, business and statistics, or a work-related background. They would need to take a series of exams and pass a certification test as well.
Job Description of a Actuary
An actuary develops, prices and evaluates the financial cost and/or risk for businesses, insurance companies or other clients. They are needed to analyze statistical information, like, disability, mortality, retirement rates and accidents in order to predict liability payments of future benefits.
They would 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 to them 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.
They use their expertise to assist businesses or clients maximize returns and manage risks with credit offerings or investment products. An actuary analyzes statistical information and other data to construct probability tables for cases, such as, natural disasters, fires and other instances that would be pertinent to a company or client. One might be required to give testimony to public agencies affecting business on proposed legislation.
An actuary needs a knowledge of economics and accounting, mathematics and others, like computers and also legal codes, government regulations and agency rules. They should have the ability to read, understand and listen to information and clearly communicate with others in a clear and informative way. They would 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, but some work as consultants on a contract basis and may need to travel to meet clients.
According to the Bureau of Labor Statistics, this career field has a rapid growth of 26 percent in 2012-2022.