Actuarial Role

What is the role of Actuary?

An actuary's everyday work responsibilities include designing and pricing policies, providing promised benefits by monitoring the adequacy of funds. He or she recommends a fair rate of bonus, valuation of the insurance business, insures solvency margin and other insurance risks such as legal liability, profit loss and several other insurance risks. Individuals in the actuary career path define risk factors and recommend re-insurance to be purchased. Individuals who opt for a career as an actuary calculate reserves for carrying out financial modelling and outstanding claims. In an actuary career in India, individuals may also provide consultation services in multiple disciplines such as insurance, taxation, employees benefit, investment, risk management and several other related disciplines. So how do become an actuary and what does it take to become one?

Compiling statistical data

Modern computer technology has made everyone's work easy. Most actuaries work on computers. Their everyday work responsibility includes using database software to compile information. The information is stored to predict the probability of occurrence of an event. They use advanced statistics and modelling software to predict the potential costs of the event. Actuaries determine if the insurance company has enough funds to pay future claims.

Planning insurance policies

Actuaries are responsible for designing, testing and administering insurance policies, investments, and other business strategies. They are involved in developing strategies to minimise risks and maximise profits. Actuaries produce charts, tables and reports to explain proposals and calculations. They are involved in meetings with company executives, clients, shareholders, government officials to explain their findings and proposals.

Working with other professionals

Actuaries usually work in teams. Their team members include managers and other professionals such as accountants, financial analysts, market research analysts and related professionals. These professionals provide support in setting the price for security offerings, forecast demand for new products.

Types of a Actuary

Health Insurance Actuary: A health insurance actuary is a professional who works in the healthcare industry. He or she predicts the expected costs of providing care under insurance terms. A health insurance actuary is responsible for developing long-term care and health insurance policies. He or she makes predictions on the basis of family history, geographic location, occupation and numerous other factors.

Life Insurance Actuary: A life insurance actuary is a professional involved in developing annuity and life insurance policies for individuals and groups. He or she estimates considering the risk factors such as age, gender or tobacco use to determine the expected years of life. A life insurance actuary calculates the expected number of claims due to road accidents. It varies with the insured individuals' age, sex, driven automobile such as four-wheeler or two-wheeler and several other factors.

Property and casual insurance actuary: Property and casual insurance actuary is responsible for developing insurance policies to assure the insurer against property loss and liabilities caused due to fires, natural disasters, or accidents. He or she calculates the expected number of claims through road accidents that varies depending on the age, gender, driving history and vehicle type of insured individuals.

Pension and retirement benefit actuary: A pension and retirement benefit actuary is responsible for designing, testing and evaluating the company's pension plans. He or she determines the availability of expected funds in future to ensure payments of future benefits. Pension actuary is responsible for developing retirement plans and providing consultation on planning retirement to individuals.

Risk management analyst: Risk Management Analysts review the investment strategies of a business, particularly overseas investments, and manage the risk associated with the relevant decisions. To forecast possible losses, they use their analytical abilities and make suggestions to reduce risk by diversification, currency exchanges, and other investment strategies. Insurance firms will, among other things, insure cars, properties, assets, along with any policy, there is a risk that an accident could occur and the insurance provider would have to cover the expenses of repair, replacement, or legal liabilities.