Career in Actuarial Science

According to Wilkipedia, actuarial science is the discipline that applies mathematical and statistical methods to asses risk in the insurance and finance industries. Actuarial science includes a number of interrelating subjects, including probability and statistics, finance and economics. One of the earliest practitioner of actuarial science was Physicist Edmond Halley of Halley’s comet fame. In addition to constructing his own life table, Halley demonstrated a method of using his life table to calculate the premium or amount of money someone of a given age should pay to purchase a life-annuity.  Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes during the last 30 years due to the proliferation of high speed computers and the synergy of stochastic actuarial models with modern financial theory.

The actuary’s skills in analysis and modeling of problems in finance, risk management and product design are used extensively in the areas of insurance, pensions, investment and more recently in wider fields such as project management, banking and health care. Within these industries, actuaries perform a wide variety of roles such as design and pricing of product, financial management and corporate planning. Actuaries are invariably involved in the overall management of insurance companies and pension, gratuity and other employee benefit funds schemes; they have statutory roles in insurance schemes sponsored by government.

Actuaries are professionals who are qualified in this field through education and experience. Many universities have undergraduate and graduate degree programs in actuarial science. In India, the Actuarial Society of India also offers this course. Any person with a high degree of aptitude for mathematics, statistics and finance can take up this course and become an Actuary.

 The following universities offer courses with actuarial science or insurance as a subject at the degree level.

• Goa University offers B.Sc. with actuarial science as a subject

• University of Mumbai offers B.Sc. with actuarial science as a subject

• Kurukshetra University offers B.A. actuarial science

• University of Delhi offers B.A. with insurance as a subject and B.A. (vocational) with insurance economics and commerce as subjects.

MBA Programs

·         The National Law University, Jodhpur offers an MBA programme in insurance.

• Amity School of Insurance and Actuarial Science, offer MBA (insurance) programme.

·         CFAI University, Hyderabad offer MBA (insurance) programme.

• Narsee Monjee Institute of Management Studies (NMIMS University) offers an MBA course in actuarial science.

• The Institute of Insurance and Risk Management, Hyderabad- 500 033, offers PG diploma courses in general insurance, life insurance and risk management.

PG courses

Actuarial science courses at the postgraduate level are offered by only a few universities. Generally, meritorious graduates in mathematics or statistics or those who have studied actuarial science as main or optional subject at the degree level are eligible for admission. A strong base in mathematics or statistics is desirable.

• The Department of Statistics of the University of Madras offers M.Sc. actuarial science.

·         University of kalyani, Kalyani, Nadia, West Bengal

·         University of Sambhalpur, Orissa

• Bishop Heber College,  Tiruchi offers M.Sc. and postgraduate diploma courses in actuarial science.

• The Amity School of Insurance and Actuarial Science, New Delhi-110 017, offers M.Sc. actuarial science.

• Narsee Monjee Institute of Management Studies (NMIMS University) conducts a one-year full-time postgraduate diploma course in actuarial science (PGDAS).

Fellow membership

The Actuarial Society of India, Fort, Mumbai-400 001, conducts an examination leading to the fellow membership, which has been recognised as a professional qualification by the insurance industry. Those who have passed Plus-Two in any subject combination with a good base in mathematics can appear for the first stage entrance test that comprise two papers — mathematics and English. Each paper is of three hours’ duration. This entrance examination is held in May and November every year. Chennai, Mumbai, Delhi, Hyderabad, Kanpur, Bhopal and Kolkata are the examination centres.

After passing the entrance examination, one should apply for student membership and can take the examination leading to professional qualification as an Actuary. This examination covers subjects including probability and statistics; mathematics of finance; life contingencies; economics and accounts; applied statistics; mortality institutional investment; life assurance; and retirement benefits.

Only those who pass the first six subjects can become an associate member. Fellow membership will be awarded to those who pass all subjects. A fellow is recognised as an Actuary.

Career opportunities

Actuarial science is considered to be a smart career option as the education is not that expensive whereas it is one of the top most job in terms of remuneration. Any qualified person with an aptitude in mathematics and statistics can become an actuary. Job avenues are in life and general insurance; operations research; statistics; investments and so on. The major government companies are Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and Postal Life Insurance. LIC deals with insurance of life while GIC deals with any other type of insurance. In recent years, many private companies including HDFC, ICICI, Kotak Mahindra, Metlife, Tata AIG and Birla Sunlife have setup office in India, hence the prospects of getting a good job in insurance compnay has increased a lot.

Life Insurance Corporation of India (LIC) provides job opportunities for qualified actuaries as assistant administrative officers. Actuaries can also works as consultants. An actuary’s skills can also be used in the fields such as pension; investment; project management; banking; healthcare; financial management; and corporate planning. Besides actuaries, insurance companies provide jobs for insurance surveyors; risk managers; claim adjusters; insurance consultants and so on.