Hi, I am CA finalist (second group cleared but first one pending), Can I go for Actuarial science?

Actuary: Quick Facts

What is an Actuary?

Actuaries analyze and assess financial risks in a business or organization. They help organizations plan for the future and help insulate them from their financial losses. This is different from the job role of an accountant, which only focuses on financial records of the past.

What Does an Actuary Do?

The job roles and responsibilities of an actuary include:

• Analyzing the possibility of future financial profit/losses by using data.
• Designing methods to decrease the possibility of negative financial effects from an undesirable event such as loss.
• Providing the methods or ways for profit in certain situations for businesses.

Why Pursue a Career as an Actuary?

There are many reasons to become an actuary, but the two main reasons that drive the majority of aspirants to pursue a career in actuary are its job prospects and the salary offered.

Job Prospects

• In 2019, actuaries were included among the top 10 jobs in the USA and have continued to be on top for the past ten years.
• As companies tend to rely more on data, the actual demand for actuaries is increasing day by day.
• US Department of Labor is predicting a 20% growth in actuary jobs upto the year 2028, which is considerably faster than the average growth rate for any other jobs.
• The insurance industry is going to fuel the majority of job growth rate in the coming years, hence opening more job opportunities for those aspirants who want to pursue a career as actuary.

Actuary Salary

• According to pay scale, an actuary earns around $60,040 as a fresher. This is higher than any other entry level salaries in the world.
• With growing demand for actuaries, the average salary is projected to increase up to $100,000.
• Such lucrative salaries, and high growth rate motivates aspirants to pursue a career as actuary.

Career as an Actuary

Becoming an Actuary in India is not so easy, students need to pass all the required exams of Actuary to become an Actuary. The course is about using statistical and mathematical techniques in order to deal with the problems in insurance, banking or other financial sectors.

School Level Preparation

• Aspirants need to prepare for actuarial courses just after passing 10th
• If you are interested in learning Actuary, you have to choose your subject according to get admission in this course
• Hence, you should take Science with Physics, Chemistry, Mathematics or Commerce with Mathematics/ Statistics

Under-Graduate Level Preparation

• For a Bachelor degree, you can take BSc in Actuarial Science or a Diploma in actuarial science.
• Many colleges such as Christ University offer BSc in actuarial science.
• To be eligible for UG level actuarial courses, aspiring students can take PCM with statistics in class 12.
• Aspirant needs to take the Actuarial Common Entrance Test, conducted by IAI to get admission in colleges offering actuarial courses.

Post-Graduate Level Preparation

• After completing Under-graduate degree, a candidate can go for further studies in the Actuary field.
• Aspirants can pursue MSc in Actuarial Science or even MBA in actuarial science.
• The eligibility criteria for PG level courses in actuarial science are having a bachelor's degree in actuarial science or any other related fields from a recognized university.
• Post fulfilment of eligibility criteria, aspirants have to appear for actuarial entrance test or management entrance exams in case of MBA in actuarial science.

Types of Actuaries

There are 12 types of Actuary job profiles you can choose to start your career after pursuing a degree in Actuary. Among these 12 types of Actuary job roles, graduates can choose to become Senior Executive Actuarial, Actuarial Product Manager, Actuarial Associate, Consultant, Analyst, Financial Adviser, etc.

Life Insurance Actuary

Actuary in the Life Insurance sector is one of the highest paying jobs after actuary course. They have to work in insurance and reinsurance companies to minimize the risk of insurance and have to generate a stable return after investing in insurance.

Pricing Actuary

They also work for insurance, corporate etc. companies to determine a price for a product. For keeping a price for a product, they have to analyze the financial data and risks of a product.

Investment Actuary

Actuary career in an investment sector is related to strategy development, investment management, risk management etc. In an investment bank, the role of an Investment Actuary is to give advice to the company on how to manage the investments in that company.

Corporate Actuary

Corporate Actuary focuses on maintaining and updating company standards. They have to do analysis of results, feedback and product pricing process.

Property and Casualty Actuary

This is the most common type of actuary job. They generally work for insurance companies to help them in developing insurance policies. These policies are developed to ensure against property loss, or any other loss resulting from natural or any other accidents.

Forensic Actuary

Forensic actuaries are responsible for providing litigation support in the matter of insurance and reinsurance.

Steps to Become an Actuary

There are some steps towards pursuing a career as an Actuary, such as choosing the right combination of subjects in high school, preparation of entrance exams, pursuing a degree in actuarial sciences, and finally getting experience and training via internships to get a high paying actuary job.

Make a Decision

A career in actuary is often a hard one as it involves some basic to advanced level applications of mathematics and statistics. Hence, an aspirant who is interested in Finance, and has a clarity of concepts used in mathematics and statistics should plan to become an actuary.

Select Right Combination of Subjects

You have to choose those subjects which can help you in becoming an actuary. Therefore, after passing the 10th board exam, take Science with PCM or Commerce with Mathematics/ Statistics from a recognized board. And after that pursue Bachelor degree in Science/ Commerce with Mathematics or Statistics or you can also study BSc. in Actuarial Science.

Entrance Exam Preparation

First of all, go through the syllabus of the entrance exam before preparing for it. Then study each topic and understand the topics one by one. Also see the exam pattern of Actuary Entrance Test and then take the mock test and solve the previous year question papers. Choose good study materials for the exam, because without books and documents you can’t clear the entrance.

After Qualifying Exam

After qualifying the exam you can choose the right company and actuary job role. Before starting your career, you have to appear for some actuary exams and internships. Some companies ask for internship certificates to recruit graduates for actuary jobs.

How to Become an Actuary in India

Becoming a Actuary in India requires a firm determination and a knack to do the course and pursue your goals. Interested candidates can start their preparation to become actuary from class 10th onwards.

Courses to Become an Actuary

A student can choose to BSc in Actuarial Science after passing 12th grade in Science or Commerce. After that they can study MSc in Actuarial Science after completing BSc in Actuarial Science or Mathematics or Statistics or MBA in actuarial science.

BSc in Actuarial Science

• This is a 3 year under-graduate degree course where you have to take Mathematics or Statistics or if you are taking admission in an Actuarial College, then you can study BSc in Actuarial Science.
• Admission to this course is done through an entrance exam, for e.g., Actuarial Common Entrance Test, this exam is conducted by IAI (Institute of Actuaries of India)
• Some colleges give admission on the basis of merit.
• Eligibility criterion for the course is Class 10+2 in Science/ Commerce with Statistics/ Mathematics or PCM.

PG Diploma in Actuarial Science

• PG Diploma in Actuarial Science is one of the best courses of actuarial science which is for 1 year.
• If you want to pursue this course you have to complete your under-graduate degree course in actuarial science or mathematics or statistics from a recognized institute or also from a reputed college.
• Admission to this course is done through the entrance exam. In some institutes or colleges, admission process is merit basis
• Entrance exam for the PG Diploma in Actuarial Science is the same as MBA courses. You have to prepare for the management exams such as the CMAT Exam to get admission in this course.

MBA in Actuarial Science

• You can become an Actuary after pursuing MBA from a recognized university.
• The course is for 2 years and a postgraduate degree course which deals with specialization in professional studies.
• Admission to this course is done through the management entrance exam. And also on the basis of personal interviews, WAT and group discussion session
• CMAT, CAT are the management entrance exams where you have to appear to study MBA in Actuarial Science.

MSc in Actuarial Science

• This is a postgraduate degree course in Actuarial Science for 2 years.
• The course deals with mathematics, statistics, economics, finance, investment, insurance, etc.
• Admission to this course is done through actuarial science common entrance examination, which is conducted by all the universities who offered the course.
• Christ University is the top college that offers this course at a fee of INR 1,81,500.
• You must have a bachelor degree in Science or Commerce with Mathematics/ Statistics or BSc in Actuarial Science to pursue the course.

How to Become an Actuary Abroad

One can become an actuary abroad only if he clears exams of actuary which are conducted by IAI (Institute of Actuary in India) or from any actuarial college from abroad.

Actuary in UK

• To become an actuary in UK, you must have to study actuary in bachelor degree from a UK University
• To become Actuary in UK, you have to be skilled in technical and IT sections
• In order to get a job in actuary you must have to do an Internship in the UK.

Actuary in US

• To become an Actuary in US, you have to pursue bachelor degree in mathematics, statistics or actuarial science
• To become an Actuary in the US, one must have to pass a series of exams which are given by the Society of Actuaries, American Society of Pension Professionals and Actuaries or Casualty Actuarial Society.
• To pass these exams, one need several years and only after that one can become an Actuary in USA

Actuary in Australia

• To become an Actuary in Australia, you must need to study Under-graduate degree in actuarial science from an accredited university in Australia
• You can also pursue a degree from Distance learning

Benefits of Career as an Actuary

As you know, this is one of the highest paying jobs in recent times. Hence there are a lot of benefits in an Actuary job.

Job Security

There is job security in this profession, because they are mainly responsible for analyzing the data and assessing risk of finance, insurance companies, corporate companies, investment banking companies etc.

Positive Impact of the Career

As you have got an idea about this career, it has a good salary package, also has job security, work and life balance etc.

Unique Experience

As an Actuary it is a great experience to work in different positions. Though the career is challenging, still if one is interested he/she can make their career in an actuary job.

Skills Required Becoming an Actuary

Salary of an Actuary in India

Salary of an Actuary varies in different job profiles and also in different job sectors.