Actuarial Scientists calculate insurance risks and premiums. You have probably heard or read of companies that support policyholders in the event of an injury, hospitalization, domestic hazards, robberies, or death and still others who look after investment schemes, employee benefits, retirement benefits, and pension schemes. The policyholders are required to pay a fixed amount as installments at regular intervals and they get this money back in the event of any untoward incident or upon the maturity of the policy. Have you ever thought about who determines how much a policyholder must pay in premiums or how much the company should pay out in pensions or returns?
This exactly is what an actuary does. An actuary's work is to determine the financial consequences of an unforeseen event. They are sarcastically referred to as financial astrologers as they look at the financial aspect of disasters. An actuary must use methods such as probability, compound interest, regulation, promotion, and management combining the talents of a statistician, economist, and financier.
The profession of actuary was formally established in 1848, when the Institute of Actuaries, London was formed. In Pakistan, traditionally actuaries were found only in the life-insurance sector but now with the opening up of the economy, they are wanted by non-life insurance companies, banks, stock exchanges, private as well as government agencies and is a field in which demand is still exceeding its supply.
Nature of work: What do actuarial scientists do?
Actuaries typically do the following:
Work in indoor setting such as offices
Have less interaction with people, in general, working in the same environment on a daily basis
Collect statistical data and information for further analysis
Estimate the probability and likely economic cost of an event such as death, sickness, accident or a natural disaster
Design, test, and administer insurance policies, investments, pension plans, and other business strategies to minimize risk and maximum probability
Make diagrams, tables, and reports for explaining proposals and calculations
Explain their findings and proposals to company executives, government officials, shareholders and clients
While the role of an actuary requires a great deal of number crunching and the nature of the job is quite tiring, it does provide intellectual challenge, status, career satisfaction, and good income. Since their evaluation is the base for many company decisions, their career paths usually lead to higher management and executive roles.
How to become an actuarial Scientists
To become an actuary one should have an undergraduate degree or postgraduate degree in actuarial sciences or related programs. The basic eligibility criterion for a bachelor’s degree is F.Sc or equivalent examination. List of Bachelor Degrees that can lead to a career in Actuarial Sciences