Actuaries Careers

Responsibilities

• Designing products: The primary role is to gauge the profitability of products launched by the firm. They are highly instrumental in allotting premiums rates, creating models to value profitability, administer experience reviews, and sometimes also interact with underwritersUnderwritersThe underwriters take the financial risk of their client in return of a financial fee. Market Makers like financial institution and large banks ensure that there is enough amount of liquidity in the market by ensuring that enough trading volume is there.read more.
• Modeling and Reporting: Analysing future liabilities like unpaid claims. Actuaries play a very important role in identifying and monitoring the funds that the company is required to discharge the promised benefits to the insurance holders. This also includes valuing the reserves required by the firm to meet future obligations.
• Estimating Profit: actuaries help companies assess their future profits by estimating net inflows. Etc.

Responsibilities

• Advising the firm on designing the premium and benefits for health insurance customers.
• Analyzing new movements and trends in the industry to tap into new opportunities and spot risks
• Keep track of the industry to gauge competitors’ way of working and remain competitive by adopting robust policies to get high returns.
• Analyze financial and accounting databases in order to prepare financial models and conduct cost and benefit analysis for health policies etc.

Responsibilities

• They are deeply involved in risk management.
• Design insurance rate plans and policies are conducive to business growth.
• Modeling and forecasting.

Education and Skill Set Required

• A bachelor’s focused on mathematics, statistics, and actuarial scienceActuarial ScienceActuarial Science evaluates the various risks associated with the field of finance. The use of mathematics and statistics, which is its prime focus, is used to analyze the uncertainty of future events and their financial implications.read more. A master’s degree is preferable.
• Accomplished course work in computer science focused on programming languages, with proficiency in Microsoft Excel.
• Well versed with statistical tools and an ability to develop intelligent conclusions from a set of databases.
• Various industry certifications to acquire professional status.
• Casualty Actuarial Society (CAS), Society of Actuaries (ASA)  Fellow Society Actuaries (FSA) designated professional.
• Should be a keen learner and have the desire to constantly develop and update market reading skills.

Salary

• A beginner level insurance actuary with the basic exam can make somewhere between $46,000 and $71,000. However, a fully certified experienced professional can make somewhere between 125,000 to 190,000. And at the senior level, they make more than $500,000.

Job Statistics and Growth Prospects

• Jobs for actuaries is poised to grow at 22% between 2016 and 2026, which is higher than the other occupations in this period. However, because it’s a small industry, the growth will only bring around 5,000 new positions over a span of 10 years.

Salary for Actuary in Different Fields

• Scientific and technical services: $108,920
• Finance and insurance: $103,010
• Government: $102,240
• Management of companies: $97,110

Positives

• It is one of the most highly paid professions in the United States, with consistently being top-ranked in job satisfaction.
• Demand for actuaries is high as they are integral to profit-making and growth objectives not only in the insurance business but also in other ones like pension, investment, etc.
• Progress and upward movement are always possible by appearing for advanced certifications.
• One of the best advantages of being an actuary is, it’s a very flexible profession; for example, if you don’t want to work in insurance, you can make a switch to some other industry that entails relevant duties and responsibilities, like finance or pension.

Negatives

• It demands a high level of complex statistical acumen and delivery, which is not for everyone. The exam requires a rigorous study pattern with high dedication levels.

Companies that Hire Insurance Actuary

1. The big four, I.e., PWC, E&Y, KPMG, Deloitte.
2. AON
3. AXA insurance
4. Prudential
5. Standard Life
6. MAX insurance
7. Willis Towers Watson
8. WNS insurance services
9. ALLIANZ
10. MERCER

Responsibilities

• Carry out regular valuations and update about the asset-liability position to the trust, at the same time, address the pay-out capabilities.
• To keep track of inflows and outflows from the fund and make sure all the transactions satisfy legal requirements.
• Reporting to regulator various important transactions and breaches/ gaps, if any.
• Determine and revise regularly the MFR (minimum funding requirement). MFR is an employer’s contribution, which is pooled and invested in getting returns in order to pay out the benefits when needed.
• To act as a guardian of all the investments of the trust, in some cases, be the investment manager and make sure the company is competent and efficient enough to discharge liabilities at all times.
• Conduct transfer value calculations. (Transfer value is a discretionary right given to an individual to transfer his benefit amount into another scheme, the however employer has the final say in this after considering legal and financial implications)
• Providing gainful suggestions to the trust/ employer when asked about recommendations for bulk transfers. (In case of deferred pensioners, the firm may decide to transfer the whole amount of future liabilities to an individual, basis the scheme clause so allows.)
• Recommending plausible suggestions in case the firm decides to partially discontinue or wind up a particular scheme. Studying financial and legal implications of such events and, at the same time, understanding the deficits created by such a fund/scheme, finally suggesting a profitable course of action.

Top Companies that Hire Pension Actuary

• Mass mutual
• Manulife
• One America
• NY Hart
• Security Mutual Life Insurance

Qualification and Skill Set Required

• Along with the qualifications prescribed under insurance actuary, to become a pension actuary, one needs to clear a set of three exams administered by the joint board for the enrolment of actuaries in order to become an ‘enrolled actuary.’ They are specialists in pension plans.

Positives

• The pension industry is a very complex business that is maturing by the day. As people realize the urgent need to save and resort to retirement plans, the funds and schemes are becoming more and more challenging to handle and get smart profits out of.
• As such, companies are trying to rope in more actuaries in their pension business. Young aspirants who are pliant and ready to be the face of the changing sector stand a lot to gain from this untapped industry.

Negatives

• The range of work has widened, and the issues this industry is facing are deep. As we are taking a profound view of life after retirement, there is an increasing awareness among the masses to save and plan smartly.
• The responsibility will heavily fall on actuary professionals to chart ways to discover, convey, and offer solutions to the stakeholders and governments at large.

Salary

• The average salary for pension actuary in the United States is around $82,765

Responsibilities

• Evaluating the impact of climate change on investments, strategies, demography which will have a binding on the pension business
• Understand how climate-related vulnerability in real estate and other lines of insurance will impact the business. At the same time, analyze its effect on projected mortality and survival ratios.
• Connect with other specialists in finance departments and study the feasibility of the investments and proposed projects from the environmental standpoint.
• Research and study well all the risks the firm is facing and will face in the future due to environmental fluctuations and consequent policy changes of the government.
• Another important role includes estimating the future trends in environment and climate, thus accordingly recommending profitable solutions to the management, at the same time conducting the valuation of reserves and the market riskMarket RiskMarket risk is the risk that an investor faces due to the decrease in the market value of a financial product that affects the whole market and is not limited to a particular economic commodity. It is often called systematic risk.read more.

Positives

• The subtle relationship between climate change and insurance has forced the necessity to rope in more and more environment specialists in strategy making.
• An actuary has a special place in this regard as they are highly skilled statistical experts with profound business acumen. As such, companies are looking to hire actuary at an increasing rate. It is very lucrative.

Negatives

• Long working hours, with high levels of accountability.