What Does An Actuary Do?
An actuary is a business professional whose job is to deal with the financial impact of risk. Actuaries use mathematics to evaluate the likelihood of events using probability. Uncertain and undesirable events are assessed for the risk they pose and the financial losses associated with them.
In short, their role is to minimise any financial losses incurred should uncertain, damaging events occur. This is done by calculating insurance premiums and reserves for insurance policies, covering a variety of risks. An insurance company will base premiums on the level of cover, the amount covered for and the likelihood of the covered event taking place.
It's not an easy task and it requires a great deal of training. To become accredited, numerous exams need to be passed. The process can take several years and is either done in an academic environment or whilst in work, taking courses and exams while earning. It sounds off-putting, but as a way of learning whilst at work, it is effective and rewarding. Actuaries are considered to have one of the best jobs in the world today and the field is expected to grow in the years to come.
The job used to be much harder before computers were widely used, or invented for that matter, the calculations were done manually. Complex tables were devised, including highly developed approximations of risk. Before any accreditation or monitoring was in place, mistakes and bad practice were commonplace. It wasn't until the mid-20th Century that dedicated mathematical foundations were developed, allowing actuaries to forecast losses using mathematical models. Today, these actuarial sciences still exist and remain an important part of learning to be an actuary.
Actuary jobs are desirable and the number of positions is growing on a daily basis, but what makes a good actuary? Good analytical skills and solid mathematical knowledge are essential and if you have a talent for it, you won't go unnoticed. The real test will come with becoming accredited. The journey is often long and difficult and there will be times when everyone on the path faces failure. But stick with it and you're set for a career in one of the best jobs out there today, in terms of income, environment and outlook.
It's a good time to get into the field as it is quickly diversifying to cover other parts of the financial sector.
In short, their role is to minimise any financial losses incurred should uncertain, damaging events occur. This is done by calculating insurance premiums and reserves for insurance policies, covering a variety of risks. An insurance company will base premiums on the level of cover, the amount covered for and the likelihood of the covered event taking place.
It's not an easy task and it requires a great deal of training. To become accredited, numerous exams need to be passed. The process can take several years and is either done in an academic environment or whilst in work, taking courses and exams while earning. It sounds off-putting, but as a way of learning whilst at work, it is effective and rewarding. Actuaries are considered to have one of the best jobs in the world today and the field is expected to grow in the years to come.
The job used to be much harder before computers were widely used, or invented for that matter, the calculations were done manually. Complex tables were devised, including highly developed approximations of risk. Before any accreditation or monitoring was in place, mistakes and bad practice were commonplace. It wasn't until the mid-20th Century that dedicated mathematical foundations were developed, allowing actuaries to forecast losses using mathematical models. Today, these actuarial sciences still exist and remain an important part of learning to be an actuary.
Actuary jobs are desirable and the number of positions is growing on a daily basis, but what makes a good actuary? Good analytical skills and solid mathematical knowledge are essential and if you have a talent for it, you won't go unnoticed. The real test will come with becoming accredited. The journey is often long and difficult and there will be times when everyone on the path faces failure. But stick with it and you're set for a career in one of the best jobs out there today, in terms of income, environment and outlook.
It's a good time to get into the field as it is quickly diversifying to cover other parts of the financial sector.
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