Providing a business professional advice & analyses in financial risk management.
Financial Risk Calculators
Actuaries mathematically calculate the financial impacts of uncertain events. These are seen as risks and factored into a financial projection. This helps minimise losses, both economic as well as emotional. Insurance companies need make extensive use of risk management and calculations to work out policy premiums and reserves.
It is easy to forget risk in times of boom and up trends. However, a boom period cannot last forever and it likely to go bust at some point. It is important to remain prepared for a time like this. Any financial plan requires future risk calculation.
For example, if you have a small printing business and are planning to venture into custom printing, you will need to think about how risky your company is. Presumably, you will invest into expanding the business, so it is vital that you factor in all risk factors into your financial plan. (more...)
What Do Actuaries Actually Do?
Actuaries are concerned with the business of assessing the financial impacts of various risk and uncertainties. An actuary is skilled at mathematically evaluating the probability of any undesirable events occurring and then assessing their monetary impact.
Actuaries traditionally work in the field of insurance and work out the premiums and reserves for insurance policies based on risk factors. Today however, the profession has diversified its applications and many actuaries are now venturing into business management, asset management and investment consultancy.
Simply having savings accounts is not the end all of effective investment, and knowing how to manage risks can come in very handy while planning long term investments and wealth management. (more...)
Career Choices
Many businesses need the services of an actuary and yet it is not a career that many people think of when they are growing up. Kids and teenagers want glamorous jobs such as pilots, programmers or working in the Commercial Telecom - Internet industry, but how many fifteen years old kids do you hear saying that they want to be an actuary?
However, for the relatively few that do decide to follow this tough and disciplined career path, the rewards are very high. It takes several years to become a qualified actuary and a lot of hard slog to take the exams, but those who manage to make it have a very interesting and highly paid career ahead of them.
So what do they actually do? A good question as not many people seem to know this. Put quite simply they calculate risk and the likelihood of certain events happening from a financial viewpoint. Who else do you think calculates the risk of crashing your car or your house burning down in order to calculate the premiums for your car or home insurance? (more...)
The Hidden Profession
Actuaries play a very important role in our lives, usually without us even knowing about their existence. While we while away our time internet shopping on Cash Back websites they are working away in the background, calculating the likelihood of this or that event happening.
Much of what an actuary does is hidden from us and we have little idea of the tasks they perform. This is due to the fact that the stringent and demanding exams and procedures to become a qualified actuary are so tough that there are relatively few people in this demanding position. Those that do make it though, can expect to be very well paid.
So what do they actually do? Many work in risk calculation, often with insurance companies. Although you will not be aware of it, your house, car and personal insurances will be calculated thanks to the work of an actuary. They will have spent time calculating the likelihood of an event occurring which will mean that you need to claim on your insurance, and the premiums are set accordingly. (more...)
Study Hard for a Good Salary
When considering their career options many people think of the glamorous and well known jobs as being in the high paid sector. They can imagine themselves being actors or footballers with top of the range cars and Spanish villas in Spain. These careers though are notoriously difficult to get into, and pinning your hopes on becoming a world class footballer is optimistic to say the least.
There are careers though that pass largely under the radar when it comes to choosing a job and being an actuary is one of them. Many teenagers have never even heard of this career option and others, while they may have a scant knowledge, don't really understand what they do or perceive it as boring.
Yet actuaries actually enjoy a very rewarding career, and with an excellent salary to boot! As there are relatively few practising actuaries they can command top salaries. Even a newly qualified actuary can earn over £30,000 per year with this rising to over £100,000 a year for someone who is experienced. (more...)
What is an Actuary?
Life is uncertain. There are risks and dangers in everything we do. But businesses don't tend to think that way. For them, risk is a financial liability, and they will go to great lengths to limit these risks. In this article we are going to talk about a profession that focuses entirely on risk and how to evaluate it.
An actuary is a trained statistician and business professional whose job it is to examine the risks involved in any business action. Nearly two-thirds of all actuaries are employed by insurance companies and it is their job to define the terms and conditions of policies. They are also charged with determining the monthly premiums and the cost of future payouts.
The simplest and most concise definition or alternate job title for an actuary would be a risk manager. But the job is not nearly as tedious as it sounds. A talented actuary must be a skilled accountant, businessman and psychologist. Yes, he must understand human nature and how it relates to risky behaviour. Most Business English Courses for Insurance Companies will include actuarial classes. (more...)
Why Become an Actuary?
No one can know what the future holds. But actuaries do a remarkable job of predicting future risks for businesses. No, they don't use tarot cards or crystal balls. A qualified actuary is a statistician that relies on mathematics, financial theory and human nature to assess risk for his employer.
Who do they work for? About two-thirds of all actuaries in the UK are employed by insurance companies. The rest are either hired as consultants or to manage risk at large corporations like banks, investment firms or hospitals.
The most common misconception when it comes to actuaries is that they are little more than glorified accountants. This is incorrect. The fact is that actuaries do much more than simply crunching numbers. They must take account (no pun intended) of a myriad of factors when they assess financial risk. These factors may include everything from history to psychology to the economy. You don't receive an award for excellence in coprorate accommodation simply for using a calculator. (more...)
How to Become an Actuary
Have you ever wondered why insurance companies charge customers different rates? Whether we are talking about life, health, car or home insurance, policy holder's base rates on a number of factors. At the end of the day, these factors are used to answer one simple question: how risky is it to insure this customer? As you might expect, the riskier the client, the higher his monthly premium.
The professionals whose job it is to analyse these risks are called actuaries. They are, in a sense, the fortune tellers of the business community. But instead of using crystal balls or tarot cards, actuaries rely on science and maths. All actuaries are statisticians who examine past numbers as a reliable guide of future risk.
Why become an actuary? There is a reason why actuaries have some of the highest job satisfaction scores in the industry. The work is challenging and intellectually stimulating. Actuaries are also highly respected members of the business community and their opinions carry a lot of weight. No, they won't win a tourism association award. (more...)
What Does an Actuary actually do?
Actuaries are some of the most respected members of the business community. They are key players on management teams and their advice and opinions go a long way. In this article we are going to discuss what actuaries actually do.
Many people mistakenly assume that actuaries are little more than high-profile accountants. But the truth is that their jobs are quite challenging and complex. What an actuary actually does is predict and manage risk. He does this scientifically, relying on his knowledge of mathematics, financial theory and human nature.
Yes, an actuary must also be a good psychologist. He must understand human motivations and actions in order to accurately assess risk. We know, it sounds a bit too ambiguous to be considered a science. Perhaps we should discuss furnished apartments for rent in Sydney (more...)
It is all about Statistics
Although many people may never have even heard of an actuary, let alone what they actually do, they play a very important role in all of our lives today. Basically they are in the numbers game. Calculating, collecting and interpreting numbers and statistics. So how does this affect us? Let's say you have booked your flight to Italy, you have reserved your apartment through your awarded Rome rentals agency and now you want to take out travel insurance in case anything goes wrong during your holiday. Who calculates the premiums? An actuary!
They work with numbers, statistics and past data and through exact mathematical calculations they assess the risk of any number of mishaps occurring during your trip, such as cancelled flights, being robbed or needing hospital treatment. As a result of these complex calculations the insurance company sets the price of the insurance policy accordingly.
The beauty is that it all seems so simple to us, especially if we get an on-line quote. Depending on certain factors, such as geographical cover, age of insured, whether winter sports are to be covered, and the length of the policy, we can quickly and easily obtain am amount of quotes at the click of a button. (more...)
What Does an Actuary Do?
Ever wondered why insurance companies charge different customers different rates? Whether home, health, life or car insurance, monthly premiums are based on a number of key factors. In the end, the most important issue that must be addressed has to do with risk. The higher the risk, the higher the monthly rate the customer will be charged.
How do companies determine this risk? No, they don't throw darts at a board. Rather, they rely on the advice and opinions of experts known as actuaries. While it may seem like they possess a sixth sense, actuaries depend on science and mathematics to make their determinations. In fact, all actuaries are statisticians who understand risk on a personal level.
What are the benefits? In addition to being well-compensated, actuaries have some of the highest job satisfaction ratings in the business community. Most actuaries find their work important and intellectually stimulating. And since they are highly respected members of the management team, their opinions and advice carry a lot of weight. Actuaries even work for injection moulding companies. (more...)
So, What Does an Actuary Do?
Risk is an unavoidable part of life. Fortunately, there are steps we can take to limit our exposure to it. In the car, we have seatbelts and airbags to prevent injuries. Indoors, we have smoke detectors and fire extinguishers to reduce the risk of fire. And for everything else we have insurance.
Insurance is one of the oldest and most reliable hedges against future risk. From life to medical to home or automotive, insurance shields us from devastating financial losses that are the obvious result of accidents or illnesses.
One of the most common questions when it comes to insurance coverage is how companies calculate individual rates. That question can really only be answered by one man, the actuary. It is his job to determine reasonable individual rates based on risk before he can buy shares That is, the risk or likelihood that a client will have an accident or be diagnosed with a serious illness. (more...)