Providing a business professional advice & analyses in financial risk management.
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.
What does it take to become an actuary? More than sixty percent of actuaries work for an insurance company. The remainder ply their trade in banks, hospitals or investment houses. All actuaries must have a college degree and depending on the industry they choose to enter, they must pass a series of exams to obtain certification.
When it comes to undergraduate studies, actuaries are expected to have a background in either maths or science. Many of the top candidates also have a background in liberal arts. Like most interdisciplinary careers, actuaries are expected to have good communication and people skills in addition to their talent for numbers.