Nature of work
An actuary evaluates, manages and advises on financial risks. He/she applies his/her knowledge of business and economics, together with his/her understanding of probability theory, statistics and investment theory, to provide strategic, commercial and financial advice. The core of actuarial work lies within pensions and insurance, where professionals are most likely to start off. Some actuaries may move on to investment banks at a later stage.Actuarial work can be diverse and ranges from highly technical roles developing complex financial products in investment banks or pensions and insurance companies to consultancy roles for those seeking a client-facing career.
Actuarial trainees may begin work as trainee pensions consultants or risk analysts while at the same time studying for professional exams. Senior actuaries can be found in consulting firms as partners, in large banks as chief risk officers or in board-level positions in insurance companies and other financial services organizations.
Specific tasks vary but work may include:
-Analyzing statistical data in order to calculate, for example, accident rates for particular groups of people;
-Using mathematical modeling techniques and statistical concepts to determine probability and assess risks, such as analyzing pension scheme liabilities, to price commercial insurance;
-Monitoring risk within trading positions in investment banking to ensure excessive risks are not taken during the fast pace of trading;
-Presenting reports, explaining their implications to managers and directors, and advising on risk limitation;
-Advising on issues such as the selection of investment managers or the administration of pensions and benefits;
-Communicating with clients and carrying out relationship management, including with investment managers, financial directors and external stakeholders;.
Actuaries may also be involved with the acceptance of proposals for new policies, with legal and taxation matters affecting life assurance, or with the investment of funds.
Environment of work
Actuaries generally work between thirty-five and forty hours per week. Trainees are closely supervised; however, this supervision decreases quickly as they pass exams. Fully qualified actuaries are highly ranked executives and consultants with a great deal of responsibility. Actuaries working as consultants have to travel to clients' offices. Others are frequently required to travel to meetings and conventions. Professional life
Actuary' advancement depends on how well he/she does his/her job . Some fully qualified actuaries may rise to top managerial jobs, such as vice president of an insurance company. Others may become associates in consulting firms..Once qualified, actuaries can progress quite quickly to managerial positions with greater levels of responsibility for project work and team management, including mentoring new trainees.
Range of typical starting salaries: 35000 SYP plus potential bonuses.
Getting the job
To become an actuary, a person needs a bachelor's degree with a strong background in mathematics and statistics. Courses in insurance law and accounting can also help. Some colleges offer undergraduate and graduate programs in actuarial science.Professional organizations give the examinations that a person should take to become an actuary. The number of examinations required varies from one insurance field to another. Generally, the first few examinations test mathematical skills that are learned in college. Because the various actuarial societies recognize each other's examinations, individuals can apply the examinations administered by one to the requirements of another if they decide to switch to another field of actuarial work. However, some of the tests are specific to various branches of the profession.
Skills
Analytical skills: Actuaries use analytical skills to identify patterns and trends in complex sets of data to determine the factors that have an effect on certain types of events.Computer skills: Actuaries should know programming languages and be able to use and develop spreadsheets, databases, and statistical analysis tools.
Interpersonal skills: Actuaries serve as leaders and members of teams, so they should be able to listen to other people’s opinions and suggestions before reaching a conclusion.
Math skills: Actuaries quantify risk by using the principles of calculus, statistics, and probability.
Problem-solving skills: Actuaries identify risks and develop ways for businesses to manage those risks.
Sources and references
If you need any further information on what is included in this file, you can visit the following websites: www.soa.org , SOA - Society of Actuaries
Arab Standard Classification of Occupations, 2008, Ed. Arab Labor Organization.
Summary
An actuary is a business professional who analyzes the financial consequences of risk. Actuary uses mathematics, statistics and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. He/she evaluates the likelihood of those events, designs creative ways to reduce the likelihood and decreases the impact of events that actually do occur.Actuaries are an important part of the management team of the companies that employ them. Their work requires a combination of strong analytical skills, business knowledge and understanding of human behavior to design and manage programs that control risk.