Most
of us are not aware of what an actuary does and the importance of the
role in an insurance company. Undoubtedly, an actuarial job may seem
quite boring, but it is one of the most challenging and high-paying
jobs. If you are a math or statistics genius, then this may be the
perfect career for you. The actuary's main responsibility is
assessing/quantifying risk and developing means of mitigating risks.
Actuaries are largely known for their work in the insurance and pension
fields, where they design financially secure benefit programs to protect
customers. Let's take a look at the role, certification process and
career advancement of an actuary. What is an Actuary? Actuaries are the
financial engineers of the insurance industry, specializing in either
life and health insurance or property and casualty insurance. Basically,
they formulate probability tables or employ highly advanced dynamic
modeling methods that predict the probability that a potential event
will generate a claim. From these tables, they ascertain the amount of
money needed for claims payouts. Different actuaries have different
roles and may work for insurance companies or consulting firms, as well
as in other businesses. They may be involved with devising a new
retirement program for a company or even calculating the impact of laws
banning car-cellphone use in automobile losses and determining suitable
rate discounts. For instance, in property insurance, property and
casualty actuaries compute the number of claims likely to result from
natural catastrophes. The actuaries take into account the property's
location, construction and several other factors before determining the
premium.
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