Actuarial science is a discipline that assesses financial risks in the insurance and finance fields, using mathematical and statistical methods. Actuarial science applies the mathematics of probability and statistics to define, analyze, and solve the financial implications of uncertain future events.
Actuarial science includes a number of interrelated subjects, including mathematics, probability theory, statistics, finance, economics, and computer science.
Actuaries are professionals trained in this discipline. In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations
Institute of Actuaries of India(IAI)
IAI is a statutory body established under The Actuaries Act 2006 (35 of 2006) for regulation of the profession of Actuaries in India
Objects of the IAI:
- The main objects of the Institute are (section 5 of the Actuaries Act, 2006);
- To promote, uphold and develop the standards of professional education, training, knowledge, practice and conduct amongst Actuaries;
- To promote the status of the Actuarial profession;
- To regulate the practice by the Members of the profession of Actuary
- To promote, in the public interest, knowledge, and research in all the matters relevant to Actuarial Science and its application; and
- To do all such things as may be incidental or conducive to the above objects or any of them.
What do Actuaries do?.
a) Actuaries Make Financial Sense of the Future
Actuaries are experts in assessing the financial impact of tomorrow's uncertain events. They enable financial decisions to be made with more confidence by:
· Analyzing the past
· Modelling the future
· Assessing the risks involved, and
· Communicating what the results mean in financial terms.
b) Actuaries Enable More Informed Decisions:
Actuaries add value by enabling businesses and individuals to make better-informed decisions, with a clearer view of the likely range of financial outcomes from different future events.
The Actuaries 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 products, 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 and employee benefit valuations to some extent in social insurance schemes sponsored by the government.
Actuarial skills are valuable for any business managing long-term financial projects both in the public and private sectors.
Actuaries apply professional rigor combined with a commercial approach to the decision-making process.
c) Actuaries Balance the Interests of All
Actuaries balance their role in business management with responsibility for safeguarding the financial interests of the public. The duty of Actuaries to consider the public interest is illustrated by their legal responsibility for protecting the benefits promised by insurance companies and pension schemes. The profession's code of conduct demands the highest standards of personal integrity from its members.
Who can become an Actuary?
• An HSC passed, graduate, postgraduate, Engineer, MBA, CA, ICWA, etc with sound knowledge in Mathematics & Statistics
• Loves logic and problem solving
• Good communicator
• Excellent business awareness
Actuarial Science Selection and Structure:
BBA and ACET:
Candidates who seek undergraduate courses in Actuarial Science must have studies Mathematics till class 12.
You can apply for the ACET exam in order to pursue the Actuarial Science Course offered by the Institute of Actuaries of India (IAI) after passing class 12.
However, for other bachelor's degree courses, admission is done on the basis of merit in class 12 exams and entrance exams conducted by respective universities.
MBA and PGDM in Actuarial Science:
Candidates can apply for MBA and PGDM courses in Actuarial Science after passing graduation with at least 60% aggregate marks.
Admissions are done on the basis of management entrance exams (such as CAT, CMAT, MAT) as well as admission personal assessment rounds (Group Discussions, WAT, and Personal Interviews).