Many people recognise actuary as the other boring financial profession. But the fact is, an actuary has more responsibilities beyond that. Learn more about the actuary profession, the average actuary salary by exams passed and other important details here.
If you like mathematics, statistics and other financial stuff, this article is for you. Becoming an actuary will give you access to maintain the uncertainty in the business settings.
Average Actuary Salary by Exams Passed
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What is an Actuary?
An actuary uses the mathematics and statistics to calculate the potential risk of a company. Thus, an actuary has a big responsibility.
An actuary can work in various industries. From insurance company to financial services. The study of actuarial is called the actuarial science.
Actuary Duties and Responsibilities
To be an actuary, you need to be able to do these duties and responsibilities:
Analyse the Financial Costs
Doing a cost analysis can be started by identifying the primary variable and fixed costs. Then, more statistical data can be added for further analyses. An actuary is responsible for this.
Minimise the Financial Risks
Every investment will surely have its own risk and it is the duty of an actuary to make the risks as low as possible. So, rather than trying to erase all the risks, it is better to get prepared for the worst scenarios.
You can start by identifying the potential problems that might occur, find out the cause and find the way to minimise it. Discuss with your team and your client about these risks.
Estimate the probabilities
Actuary works in uncertainty. He uses mathematics and statistics to forecast the probability and the potential cost. This forecast technique will be different for each company where the actuary works.
For insurance companies, the forecast considers some factors such as age, driving history and gender. While for the financial services, an actuary might consider the cash flow, potential market and so on.
Administer the policies
Actuary that works in an insurance company takes charge in determining premiums and claims based on the policies. Not only insurance, an actuary also works with investments and pension plans policies.
Explain the Financial Concept
An actuary must explain the modelling, forecasting or any report to the shareholders, policyholders, or any company’s executive. So an actuary must have an ability to present and communicate.
How to Become An Actuary
To be an actuary, you can start by applying for abachelor of actuarial studies or actuarial science and complete it. You will learn about statistics, business, investments, risk management, pensions and many others. Most programs take three to four years to finish.
Moreover, you can also take any certification. A globally recognised certification is a plus. One of the certifications you can take is the Certified Actuarial Analyst (CAA).
CAA is a certification issued by CAA Global. Having a CAA certification will make you become a professional analyst. It proves your ability in financial business, analytical and modelling skills.
Interested in becoming an actuary? You can have your career once you completed your bachelor’s degree and earn a competitive average actuary salary by exams passed. However, the average salary might be different according to your certifications and experiences.