ACTUARIAL SCIENCE

Insurance is the coverage provided for any uncertainty in future. It is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Insurance can therefore cover life, health, goods, equipments, travel or anything of value to the person or organization body.Actuarial science applies mathematics and statistical methods to finance and insurance for assessing the risk.

In simple terms, it deals with calculation of insurance risk and premium. It is build on the statistical evaluation of the financial and economic implications of possible contingencies occurring in future. Companies provide insurance cover to policy holders in case of any eventuality like accidents, household hazards, thefts or death and even provide investment schemes, employee benefits, retirement benefits and pension schemes. Actuaries are organizations which provide services in sectors like finance and investment, insurance for health, life, general and several benefit plans regarding employee retirement.




Actuaries are organization which provide professional services in a wide range of business and social contexts An actuary is a business professional who analyses the financial consequences of risk. He combines the skills of a statistician, economist and financier. He employs techniques of probability, compound interest, law, marketing, management, etc., to predict the outcome of future contingencies. Actuary by his analytical and incisive outlook can make significant contributions in the fields like demography, social welfare, etc.

Actuary help in managing business for financial projects, both in public and private sector 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 schemes sponsored by the government.



A career in actuarial science stands out in many aspects. It is highly rewarding and challenging as the profession offers you rewards in terms of intellectual challenge, status, job satisfaction and earnings. The Life Insurance Corporation of India is the primary employer of actuaries and actuarial students. Outside of LIC, the GIC, foreign banks, Government, and others also employ a few professionals. Some actuaries set up their own consultancy firms, mainly advising companies on gratuity and retirement benefit schemes. Usually Actuaries associate with insurance sector but in today�s scenario the economy has many avenues for actuaries in sectors like non-life insurance, employee benefits, health insurance, asset-management, reinsurance, insurance broking houses and consulting companies. Actuaries have scope for career growth not only in India but also in countries like USA, UK, Canada and Australia where they already have the necessary infrastructure and support system available.

Development Officer:
He is a II class officer group whose work profile includes recruitment of agents, training them for procurement of new business and servicing of the existing policies. Insurance/ Composite Agents: Insurance agents help individuals, families and businesses select insurance policies that provide the best protection for their lives, health, and property. They are the people who have taken up an agency from the insurance company to sell their policy on a commission basis.

Insurance Surveyors:
They are mostly independent professionals who are hired by the insurance companies to work as consultants. Surveyor would investigate, evaluate, assess, adjust and determine the liability, negotiate and then finally submit a report to the insurance company.

Insurance Underwriter:
Underwriters assesses the risk in the business and takes care of risk management.They review insurance applications and decide whether they should be accepted or rejected.

Investment Professionals:
The funds collected from the investors have to be deployed in various investment options for maximizing the returns. For this investment professionals are required and this is a promising field for those with a degree in finance



Indian insurance industry has an exceptional growth with private participation. It combines both public and private players in the field of life and non-life business. This sector not only provides a protective shield to the lives and assets of the nation but also generate thousands of jobs and career opportunities. The Institute of Actuaries Of India (IAI or formally ASI) was initially started as a non-examining body when Actuaries used to get qualified from Institute of Actuaries or Faculty of Actuaries of UK.

The Actuarial Society of India (ASI), the only professional body of Actuaries in India was formed in 1944. Its objectives include the advancement of Actuarial profession in India, providing opportunities for interaction among members of the profession, facilitating research, arranging lectures on relevant subjects and providing facilities and guidance to those studying for the professional Actuarial Examination.

• Annamalai University, Annamalai Nagar,South Arcot, Vallalar , Cuddalore Dist
  
  
• Institute of Insurance and Risk Management, Hyderabad, Plot No:1149, Road No.57, Jubilee Hills , Hyderabad.


• Dr. Babasaheb Ambedkar Open University, Govt. Bungalow No. 9, Near Dafnala, Shahibaug , Ahmedabad.


• Acharya Nagarjuna University Centre for Distance Education, Guntur Dist, Andhra Pradesh.
  
  
• Manonmaniam Sundaranar University, Directorate Of Distance and Continuing Education, Abishekapatti, Tirunelveli, Tamilnadu.


• Pondicherry University, Directorate of Distance Education.


• Punjabi University Department Of Correspondence Studies, Punjab.
  

In government sector, the pay scale of the officers in the insurance sector as given by the government of India is in the range of Rs 3000-Rs 8000 for development officers and goes upto Rs 14,000-16,000 for zonal managers. Along the basic pay given above, allowances amount is about 200 percent of the basic pay. In private sector, starting salaries are mainly of range for Rs 6000 to Rs 9000 per month, where management graduates can start with Rs 15,000 to Rs 25,000 per month. Commissions serves the purpose as most common form of compensation for insurance agents and the amount depends on the type and amount of insurance sold, and whether the transaction is a new policy or a renewal. On the 1st year of policy, they may get about 25-32% of the premium amount, followed by 7.5% in the 2nd and 3rd and 5% in 4th and 5th year. When they meet their sales goals, bonuses are also awarded. Remuneration of agents are being governed by IRDA regulations, while earnings of surveyors depend upon nature of work and assignments.



The Actuarial Society of India and Institute of Actuaries in UK are professional examining bodies which conduct certificate, associateship level and fellowship level examinations and on passing these examinations candidates become eligible to be admitted as an Associate Member. A number of universities are offering graduate and post graduate courses in actuarial sciences. The Actuarial Society of India (ASI), which is the only professional body of Actuaries in India was formed in 1944 and was admitted as a member of the International Actuarial Association (IAA), an umbrella organization to all actuarial bodies across the world in 1979.

Qualifications

• Any person with minimum 18 years of age and having a high degree of aptitude for mathematics and statistics can take up the course and become an Actuary.


• Should have passed 10+2(HSC) or equivalent with at least 85% in Mathematics/ Statistics.


• Graduates or Post Graduate with not less than 55% marks in Mathematical subjects (i.e. Mathematics or any of its branches; Statistics or any of its sub classifications such as Mathematical Statistics and Applied Statistics; Econometrics; Computer Sciences; Any discipline of Engineering; Subject in Science such as Physics or its branches).


• Candidates with CA/ CS/ CWA/ MBA (Finance)/ PGDBA


• Candidates who are qualified members of professional bodies such as the Institute of Chartered Accountants of India (ICAI), The institute of Cost and Works Accountants of India (ICWAI) and Certified institute of Financial Analysts of India (IFAI) and Fellow of Insurance Institute of India (III)- passing with the subjects Mathematical Basis of Insurance and Statistics.


• A student member of actuarial bodies such as Institute of Actuaries, London; Faculty of Actuaries in Scotland and Institute of Actuaries, Australian students from Society of Actuaries, USA and Casualty Actuarial society, USA, provided that they must have passed at least one subject from these bodies.

• International Post Graduate Diploma in General Insurance


• International Post Graduate Diploma in Life Insurance


• International Post Graduate Diploma in Risk Management


• Candidates with CA/ CS/ CWA/ MBA (Finance)/ PGDBA


• Master of Insurance Business


• Post Graduate Diploma in Insurance

Students must take 15 subjects (14+1 optional) in preparing for the actuarial examinations. These subjects are grouped into 100 Series (CT), 200 Series (CA), 300 Series (ST) and 400 Series (SA). The subjects in CT Series cover Mathematical, statistical, economic and financial techniques, which are applicable internationally. The CA series contains a question of general actuarial interest and aims to test communication skills of the students with regard to application of actuarial technique learnt in the CT Series subject. The ST Series covers investment, which are Life-Insurance, General Insurance and Pensions and other Employee benefits. The SA Series subjects focus on the practical application of the Principles covered in the corresponding ST Series subjects and earlier subjects. There are 9 subjects in CT series, 3 subjects in CA series, 6 subjects in ST series out of which the student will chose 2 subjects and 6 subjects in SA series out of which the student will chose 1 subject.

• Financial Mathematics


• Finance and Financial Reporting


• Probability and Mathematical Statistics


• Models


• General Insurance, Life and Health Contingencies


• Statistical Methods


• Economics


• Financial Economics


• Business Awareness Module


• Core Applications concepts consisting of assets and liabilities


• Modelling, CA3-Communications


• Health & care Insurance


• Life Insurance


• General Insurance


• Pension & other employee benefit

The actuaries and actuarial trainees are employed by the following national and international organizations:

Actuarial Science Insurance Companies [be it private or public -life or general]. Major government companies are Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and Postal Life Insurance. Firm of Consulting Actuaries Authorities like IRDA, PFRDA & TAC Asset liability Management Companies Large Banks and Investment Firms like World Bank, ADB, etc Pension Banks and Employee Benefit Companies- likely to be opened in India soon. Large Capital & Turnkey Project Handling Companies Software Development Companies Actuarial BPO Companies AMP Sanmar Life Insurance Co.Ltd; Allianz Bajaj Life Insurance Co Ltd; Sun Life (Distributor Co Ltd); Aviva Life Insurance Co Ltd.; HDFC Standard Life Insurance Co Ltd.; ICICI Prudential Life Insurance Co Ltd.; ING Vysya Life insurance Co Ltd; Om Kotak Mahindra Life Insurance Co Ltd.; Max New York Life Insurance Co Ltd.; Met Life Insurance Co Ltd.; SBI Life Insurance Co LTD; TATA AIG Life Insurance Co Ltd; Life Insurance Corporation of India Non-Life Insurance Bajaj Allianz; HDFC Chhub GIC ltd; ICICI Lombard General Insurance Co Ltd; IFFCO-TOKIO General Insurance Co Ltd.; Reliance GIF; Royal Sundaram GIC; Cholamandalam GIC; TATA AIG; Oriental Insurance; United India Insurance.; National Insurance Co; General Insurance Corporation; New India Assurance Company

An individual aspiring for actuarial career requires strong ability and liking for numbers. A sound understanding of the business environment, economics, finance and accounts is also essential. Good communication and computer skills are obvious qualities. With a professional bent of mind, a sound commercial approach to decision-making is important. The actuary mostly has a legal responsibility to safeguard the financial interests of the public. The job of an actuary involves deliberately formulating policies and calculating the premium to be charged. For this they assemble and analyze data to estimate the probability of such eventualities as death, sickness, injury, disability and property loss and formulate a sum which is advantageous to the customer as well as the company.