actuary project

8/3/2019 Actuary Project

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INTRODUCTION

Now a days, most of us must have seen, heard and read about

companies which provide insurance cover to policy holders in case of any

eventuality like accidents, hospitalization, household hazards, thefts or

death and still others who look after investment schemes, employee

benefits, retirement benefits and pension schemes. The policy holders are

required to pay a fixed amount as installments at regular intervals and

they get this money back in the event of any untoward incident or upon

the maturity of the policy. Have you ever wondered who decides as to

what amount of money a policy holder should pay as premium or what

sum should be given as pension amount or returns by the company?

Well, this exactly is what an actuary does. They calculate insurance risks

and premiums. Technically speaking the job of an actuary is to assess the

financial impact of an uncertain future event. Roughly speaking they look

at the financial aspect of disasters, sarcastically speaking they are

financial astrologers.

An actuary has to combine the skills of a statistician, economist and

financier and employ techniques of probability, compound interest, law,

marketing, management etc to predict the outcome of future

contingencies and design solutions to lessen the financial severity of such

events.

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Actuarial profession was formally established in 1848, with the formation

of Institute of Actuaries, London. In India, traditionally actuaries were

found only in the life-insurance sector but now with the opening up of the

economy they are wanted by non-life insurance companies, banks, stock

exchanges, private and government agencies and this is one field where

demand exceeds supply.

The Actuarial Society of India (ASI), 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. It was registered in 1982

under registration of Literacy, Scientific and Charitable Societies Act XIII

of 1960. 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.

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 Institute of

Actuaries of India started conducting Entrance Examinations in India for

students of Institute of Actuaries, UK, in 1975. In 1989, it started

conducting examinations for its Indian qualification up to Associate ship

level, and in 1992, it started conducting Fellowship level exams. The IAI

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has been following the UK pattern of examinations since November 2000

with an eye to be a part of global standards set by the International

Actuarial Association (IAA).

To become an actuary one must be a Fellow of a recognized professional

examining body like the Actuarial Society of India (ASI), Mumbai or the

Institute of Actuaries, London. The work of an actuary involves a lot of

number crunching and the nature of work is quite tedious, nevertheless it

offers rewards in terms of intellectual challenge, status, job satisfaction

and earnings. As their judgment is the basis of decision making for many

business activities, their career paths often lead to upper management

and executive positions.

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WHAT IS AN ACTUARY?

Most people will know something about the professions of accountants,

doctors and lawyers. But tell someone youre an actuary and more than

likely they will look at you blankly never having heard of an actuary.

If, however, they are aware of the work that actuaries do, they are likely

to be impressed; being an actuary carries quite a reputation. This is

partly due to the difficult exams, but mostly due to the fact that

actuaries are experts in a field that is renowned for its complexity and

mathematical prowess.

An actuary deals with the business of insurance and is responsible for

many areas under the broad category of insurance. The actuary is an

individual who will analyze important data such as mortality, sickness,

injury and disability rates and use that information to aid those involved

with insurance. An actuary is responsible for collecting the data to forecast

future risks and see how these predictions will affect various aspects of

insurance.

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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.

A person with a high degree of aptitude for mathematics and statistics can

become an actuary. The other necessary skills include good

communication skills, ability to use computers and related technology,

business sense, a practical outlook, a curious bent of mind, the ability to

work on ones own and also be a team player as the situation demands

and to be self motivated.. However an aspirant should have single minded

devotion, total dedication and a systematic approach towards problems in

order to successfully become an Actuary.

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THE ROLE AND RESPONSIBILITIES OF AN ACTUARY

The daily job duties, which an actuary must complete, are quite vast and

varied. This individual wears many hats and must be adept with

completing various tasks on a daily basis. Although many individuals may

be unaware of the responsibilities, which an actuary takes on in their job

role, the position of actuary is one of an important nature.

One who accepts the role of actuary is responsible for a multitude of

items. They will review statistical information relating to rates dealing with

mortality, sickness, accidents, disability and retirement. They will take the

information that they obtain from reviewing statistical data and relay the

information to individuals who need such items to successfully pursue

insurance-related interests. The general role of the actuary is to compile

the data that they collect in such a manner that it helps companies deal

with payment and coverage issues.

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SPECIFIC DUTIES OF AN ACTUARY

There are a variety of specific duties, which an actuary must carry out on

a daily basis. The first duty that an actuary must undertake in their job role

is to review a variety of documents. These documents relate to statistical

information, insurance plans, annuity plans, pension plans, contracts and

company policies. The overall goal in reviewing these various document is

to construct guidelines for which the companies can follow with their

customers and employees.

Once the actuary has reviewed all of the pertinent documents, the

individual must then construct concise tables evidencing the results of the

intense document review. The tables will diagram the statistical evidence

as well as highlight the recommended route to pursue with regard to

disbursements, premiums and retirement funds.

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An additional specific duty of an actuary is to determine company policy

and explain such policy and its aspects to those who will benefit from it.

The actuary may also work on the policy so that it adequately works to

benefit those affected by the policy.

An actuary may also do consulting work and help various companies with

their statistical needs and company policy construction. One who is an

actuary may work for a specific corporation or many different companies

and corporations.

Actuaries may also be asked to testify as expert witnesses in various

forms of litigation. Their testimony most often relates to the lifetime

earnings an individual would have seen based on a variety of factors.

One who fulfills the role of an actuary may also have to testify before

public agencies with regard to new or revised legislation affecting the

companies and corporations, which it works for. This frequently occurs

when a new law is about to be passed or the company wishes a particular

piece of legislation to become law.

The actuary is also the go to individual for any questions relating to their

job responsibilities asked by the customers of the company. If the

questions are best answered by the actuary, and then he/she will do so in

order to present straightforward information to the public.

An actuary must also develop mathematical ideas and formulas so that

the proper data can be assessed. The actuary must use his/her

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mathematical abilities to format equations, which will aid in the resolution

of an issue.

TRAITS WHICH ALL ACTUARIES SHOULD POSSESS

There are many beneficial traits, which an actuary should possess. First

and foremost, an actuary needs to possess wonderful mathematical skills.

Since they will be dealing a great deal with statistical equations and data,

having such mathematical skills will help them to excel in their job

responsibilities.

Good analytical skills are another important trait which an actuary should

possess as it will help them in their job role. As they will need to analyze a

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variety of documents, having analytical skills, which are more than

adequate, will greatly benefit them in the long run.

An actuary is an individual who should possess good public speaking

skills as well. In their daily job duties, not only will they need to analyze

documents and data but they will also have to report such data results to

company officials and members of the public. Therefore, in order to best

get their opinions and conclusions across in a straightforward, easy to

understand manner, good public speaking skills should be a prerequisite

to taking on the role of actuary.

Creativity is something, which actuaries should possess. From time to

time, they will need to aid company officials in the drafting of company

policy and make changes to the policy. With a little bit of creativity, an

actuary will be able to take the documentation and put such a spin on it

that it is formed into a proper and valid policy.

One who is an actuary should also have wonderful research skills. Since

many of the documents that they need to analyze will not just pop into

their laps, it is important that actuaries can do good research and find out

what they need to know with regard to statistics and pertinent documents

in an efficient and expedient manner.

An actuary should also have good working computer skills. Since much of

their work will involve computers, it is important that the actuary not only

be familiar with computers but know how to maneuver around with them

as well.

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Comprehension skills are also a necessary component for all actuaries to

possess. The actuary is an individual who in their job role will need to

analyze and interpret often-complex documents and laws as well. If one

has excellent comprehension skills they will be able to do their job that

much better.

ELIGIBILITY

The Actuarial Society of India and Institute of Actuaries, UK are

professional examining bodies which conduct certificate, associate ship

level and fellowship level examinations and on passing these

examinations candidates become eligible to be admitted as an Associate

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Member of the society and can use AASI against their name as a

registered actuary. On passing all the subjects up to and including 400

Series and upon satisfying the other criteria specified for the purpose,

candidates become eligible to be admitted as fellow member of the

Society and can use FASI against his/her name as a recognized fellow.

A number of universities are offering graduate and postgraduate courses

in actuarial sciences. Mere completion of such courses does not make

one eligible to practice as an actuary, but such courses give students

better conceptual clarity and training by experts in a classroom

environment which makes them better equipped than if they directly write

papers of ASI through self study. To qualify as an Actuary, a candidate

has to pass all examinations in the prescribed subjects conducted by the

professional examining body such as the Actuarial Society of India and

the Institute of Actuaries, UK.

THE ACTUARIAL SOCIETY OF INDIA

The Actuarial Society of India was established in 1944 and registered as a

Society in 1982 under Act XXI of 1860 registration of Literary, Scientific

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and Charitable Societies. The Society is a founder member of the

International Forum of Actuarial Associations.

Objects

To provide a central Organization for the members of the actuarial

profession in India for the purpose of elevating the attainment and

status and for promoting the general efficiency of all who are

engaged in occupations connected with the pursuits of an actuary;

To extend and improve the data and methods of the Science which

has its origin in the application of the doctrine of probabilities to the

affairs of life and to consider all monetary questions involving,

separately or in combination, the mathematical doctrine of

probabilities and the principles of interest;

To plan, promote and provide for interaction amongst the

members, to arrange facilities for the reading of papers, the

delivery of lectures, the discussion of topics and for the acquisition

and dissemination by other means of useful information and

knowledge connected with Actuarial Science and other allied

subjects with special reference to Indian conditions;

To promote or to conduct work or research of interest to Actuarial

Science or to the practice of the Actuary;

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To prescribe syllabus of studies and hold examinations in subjects

pertaining to principles and practice of Actuarial Science with

particular reference to Indian conditions, by means of which the

attainment of adequate standard can be tested and to award

certificates, diplomas and other distinctions to successful

candidates;

To provide educational services and other facilities to those

studying for actuarial examinations;

To disseminate information on Actuarial Science and other allied

subjects by undertaking and providing for publication of journals,

reports, pamphlets, research papers, books and other literature;

To form and maintain either by itself or in collaboration with some

other Organization or organizations a library or libraries for use by

members of the Society;

To confer honorary awards and other distinctions;

To institute and award scholarships, prizes, medals and

certificates;

To maintain liaison with Universities and other educational and

professional bodies in India or abroad for the purpose of promoting

the objects of the Society;

To maintain contact and co-operate with other institutions in any

part of the world having objects wholly or partly similar to those of

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the Society including by way of payment of subscription, enrollment

as a member thereof, and generally in such a manner as may be

conducive to the furtherance of the common objects as the Society

may deem necessary;

To discuss and comment on the actuarial aspects of public, social

and economic and financial questions which from time to time may

be the subject of public interest;

To consider the actuarial aspects of legislation, existing and

proposed, and to take such action as is considered desirable;

To arrange for the compilation and publication of statistical data

and of actuarial tables based thereon;

To raise funds by subscription from the members of the Society

and to accept donations and bequests for all or any of the purposes

of the Society; and

Generally do all such things as from time to time may be necessary

to elevate the status and procure advancement of the interest

of the profession.

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ROLE OF ACTUARIES IN INSURANCE

Actuaries are experts who perform actuarial analysis of insurance rates,

rating procedures, rating plans, and schedules of insurance companies.

These are professionals who are experienced in reviewing and analyzing

insurance operations, reserves and underwriting procedures and provide

technical assistance regarding actuarial matters to policy examiners and

other technical staff. In other words they are the people who ascertain in

advance the uncertain events that could take place in future and come to

a financial conclusion.

Actuaries are involved in pricing, product design, financial management

and corporate planning. They use their professional expertise in solving

complication financial problems by combining their theoretical as well as

practical knowledge.

Actuaries also hold a legal responsibility for protecting the benefits

promised by insurance companies. Their role demands the highest

standards of personal integrity and application of professional skills.

Actuaries balance their role in business management with responsibility

for safeguarding the financial interests of the public

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APPOINTED ACTUARIES:

Procedure for Appointment of an Appointed Actuary:

1) An insurer registered to carry on insurance business in India shall,

subject to sub-regulation, appoint an actuary, who shall be known as the

'Appointed Actuary' for the purposes of the Act.

2) A person shall be eligible to be appointed as an appointed actuary for

an insurer, if he or she shall be------

(i) ordinarily resident in India;

(ii) a Fellow Member of the Actuarial Society of India;

(iii) an employee of the life insurer, in case of life insurance

business;

(iv) an employee of the insurer or a consulting actuary, in case of

general insurance business;

(iv) a person who has not committed any breach of professional

conduct;

(v) a person against whom no disciplinary action by the Actuarial

Society of India or any other actuarial professional body is pending;

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(vi) not an appointed actuary of another insurer;

(vii) a person who possesses a Certificate of Practice issued by the

Actuarial Society of India; and

(viii) not over the age of seventy years.

(3) An insurer shall seek the approval of the Authority for the appointment

of appointed actuary, submitting the application in Form IRDA-AA-1.

(4) The Authority shall, within thirty days from the date of receipt of

application, either accept or reject the same:

Provided that before the rejecting the application, the Authority shall give

an opportunity of being heard to the insurer.

(5) If an insurer does not receive approval within thirty days of the receipt

of such application by the Authority, the insurer shall deem that the

approval has been granted by the Authority.

(6) An insurer, who is unable to appoint an appointed actuary in

accordance with sub-regulation (2), shall make an application to the

Authority in writing for relaxation of one or more conditions mentioned in

sub-regulation 2.

(7) The Author all, on receipt of the application referred to in sub-

regulation (6), communicate its decision to the insurer within thirty days of

receipt of such application.

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(8) The appointment of an appointed actuary shall take effect from the

date of approval by the Authority.

CESSATION OF APPOINTMENT

OF APPOINTED ACTUARY.

(1) An appointed actuary shall cease to be so, if he or she has been given

notice of withdrawal of approval by the Authority on the following grounds:

(a) that he or she ceases to be eligible in accordance with sub-

regulation (2) of regulation (3), or;

(b) that he or she has, in the opinion of the Authority, failed to

perform adequately and properly the duties and obligations of

an appointed actuary under these regulations.

(2) The Authority shall give an appointed actuary a reasonable opportunity

of being heard, if he or she has been given a notice of withdrawal of

approval by it.

(3) If a person ceases to be an appointed actuary of an insurer otherwise

than on the grounds mentioned in sub-regulation (1), the insurer and the

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appointed actuary shall intimate the Authority the reasons therefore within

fifteen days of such a cessation.

POWERS OF APPOINTED ACTUARY:

(1) An appointed actuary shall have access to all information or

documents in possession, or under control, of the insurer if such access is

necessary for the proper and effective performance of the functions and

duties of the appointed actuary.

(2) The appointed actuary may seek any information for the purpose of

sub-regulation (1) of this regulation from any officer or employee of the

insurer.

(3) The appointed actuary shall be entitled, --

(a) to attend all meetings of the management including the directors of the

insurer;

(b) to speak and discuss on any matter, at such meeting,--

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(i) that relates to the actuarial advice given to the directors;

(ii) that may affect the solvency of the insurer;

(iii) that may affect the ability of the insurer to meet the reasonable

expectations of policyholders; or

(iv) on which actuarial advice is necessary;

(c) to attend, --

(i) any meeting of the shareholders or the policyholders of the

insurer; or

(ii) any other meeting of members of the insurer at which the

insurer's annual accounts or financial statements are to be

considered or at which any matter in connection with the appointed

actuary's duties is discussed.

DUTIES AND OBLIGATIONS

In particular and without prejudice to the generality of the foregoing

matters, and in the interests of the insurance industry and the

policyholders, the duties and obligations of an appointed actuary of an

insurer shall include:--

(a) rendering actuarial advice to the management of the insurer, in

particular in the areas of product design and pricing, insurance

contract wording, investments and reinsurance;

(b) ensuring the solvency of the insurer at all times;

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(c) complying with the provisions of the section 64V of the Act in regard to

certification of the assets and liabilities that have been valued in the

manner required under the said section;

(d) complying with the provisions of the section 64 VA of the Act in regard

to maintenance of required solvency margin in the manner required under

the said section;

(e) drawing the attention of management of the insurer, to any matter on

which he or she thinks that action is required to be taken by the insurer to

avoid--

(i) any contravention of the Act; or

(ii) prejudice to the interests of policyholders;

(f) complying with the Authority's directions from time to time;

(g) in the case of the insurer carrying on life insurance business,--

(i) to certify the actuarial report and abstract and other returns as

required under section 13 of the Act;

(ii) to comply with the provisions of section 21 of the Act in regard

to further information required by the Authority;

(iii) to comply with the provisions of section 40-B of the Act in

regard to the bases of premium;

(iv) to comply with the provisions of the section 112 of the Act in

regard to recommendation of interim bonus or bonuses payable by

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life insurer to policyholders whose policies mature for payment by

reason of death or otherwise during the inter-valuation period;

(v) to ensure that all the requisite records have been made

available to him or her for the purpose of conducting actuarial

valuation of liabilities and assets of the insurer;

(vi) to ensure that the premium rates of the insurance products are

fair;

(vii) to certify that the mathematical reserves have been determined

taking into account the guidance notes issued by the Actuarial

Society of India and any directions given by the Authority;

(viii) to ensure that the policyholders' reasonable expectations have

been considered in the matter of valuation of liabilities and

distribution of surplus to the participating policyholders who are

entitled for a share of surplus;

(ix) to submit the actuarial advice in the interests of the insurance

industry and the policyholders;

(h) in the case of the insurer carrying on general insurance business to

ensure, --

(i) that the rates are fair in respect of those contracts that are

governed by the insurer's in-house tariff;

(ii) that the actuarial principles, in the determination of liabilities,

have been used in the calculation of reserves for incurred but not

reported claims (IBNR) and other reserves where actuarial advice

is sought by the Authority;

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(i) informing the Authority in writing of his or her opinion, within a

reasonable time, whether,--

(i) the insurer has contravened the Act or any other Acts;

(ii) the contravention is of such a nature that it may affect

significantly the interests of the owners or beneficiaries of policies

issued by the insurer;

(iii) the directors of the insurer have failed to take such action as is

reasonably necessary to enable him to exercise his or her duties

and obligations under this regulation; or

(iv) an officer or employee of the insurer has engaged in conduct

calculated to prevent him or her exercising his or her duties and

obligations under this regulation.

\

ABSOLUTE PRIVILEGE OF APPOINTED ACTUARY.

-(1) An appointed actuary shall enjoy absolute privilege to make any

statement, oral or written, for the purpose of the performance of his

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functions as appointed actuary. This is in addition to any other privilege

conferred upon an appointed actuary under any other Regulations.

(2) Any provision of the letter of appointment of the appointed actuary,

which restricts or prevents his duties, obligations and privileges under

these regulations, shall be of no effect.

Applicability to reinsurance business.-

- These regulations shall apply to reinsurers carrying on reinsurance

business in India.

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GROWTH RATE

According to R. Kannan, president, Actuarial Society of India, the opening

up of the insurance sector in the country has pushed up the demand for

qualified and senior actuarial students. "About 2,000 candidates enroll

with the ASI as students every year. But the total number of actuaries

available in India is only about 225. Of these there are just 40 people in

the 20-60 age group," says Kannan. "On the other hand, each of the 15

life insurance and 15 non-life insurance companies needs at least two to

three qualified actuaries."

While there is no concrete forecast on what the demand for actuaries will

be, E Balaji, COO, Ma Foi Management Consultants, a human resource

consulting and recruitment firm that signed up about 40 actuaries for a

single BPO client in end-2005, says that there is generally a 20-25 per

cent shortfall in supply.

R Krishnamurthy, managing director (distribution consulting), Watson

Wyatt Insurance Consulting, agrees that insurance liberalisation has

exposed a big gap in the demand and supply ratio of actuaries. "When the

Life Insurance Corporation of India was the monopoly player and general

insurance was subject to a tariff regime, opportunities were limited and

there was no incentive to qualify as actuaries," he says. "Now there is a

demand for freshly qualified actuaries, especially in the employee benefit

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sector. Till now, this sector was largely handled by chartered accountants,

but changes will call for professional actuarial valuation."

At the moment, qualified actuaries find the going good. Consider Anil

Singh, 37. He started out as an actuarial trainee with LIC in 1991, soon

after completing his Master's in Statistics from Lucknow University. While

working with LIC, he studied with the ASI and, in 1995, became an ASI

associate. After a break, Singh qualified as an actuarial fellow in 1999.

Subsequently, he worked with a couple of private sector insurance

companies as a senior actuarial analyst and is now the chief actuary with

Bajaj Allianz Life Insurance, taking home an annual pay packet of Rs 40

lakh (Rs 4 million).

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NEW AVENUES

Low supply, high demand. There are only 225 actuaries in India. Industry

feels there is 20-25% shortfall.

Larger profile. Apart from the traditional areas of life and general

insurance, pension and reinsurance, actuaries now act as consultants,

investment advisers and risk managers as well.

Hands on. ASI fellowships can be completed in 5-6 years' time. Actuarial

studies can be pursued alongside a full-time job.

Money magic. With about 6 years of experience, a fellowship and work at

a senior position, you can earn Rs 50 lakh a year.

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DRIVING FORCE

The growth in the Indian financial market is the major reason for the spurt

in the demand for actuaries. Apart from the traditional areas of life and

general insurance, pension and reinsurance, actuaries are now needed to

play the roles of consultants, investment advisers and risk managers as

well. A number of banks are planning joint ventures to set up insurance

companies in 2007, which is likely to raise the number of life insurance

companies from 16 to more than 20. The number of general insurance

companies is also expected to increase from 12 to around 15.

The health insurance sector is also expected to get a big dose of growth.

V Jaganathan, managing director of Star Health Insurance, says there is

huge potential for the sector in a populous country like India. Apollo

Hospital, for instance, is close to establishing a health insurance

company. Reforms in pension funds, whenever they happen, are also

expected to add to the demand.

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India has the potential to emerge as a key actuarial back office in the BPO

sector as well. A few companies are already in the business of low-level

calculations. Once the supply pool expands, India can take up more

complex and more lucrative back office work, says Krishnamurthy.

JOB PROSPECTS & CAREER OPTIONS

Traditionally actuaries have been associated with insurance sector but in

present scenario with the economy opening up actuaries are needed in

sectors like non-life insurance, employee benefits, health insurance,

asset-management, reinsurance, insurance broking houses and

consulting companies.

The job of an actuary involves formulating policies and calculating the

premium to be charged. For this they assemble and analyse 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. In areas where employee benefits

and retirement/ pension schemes are dealt, the actuaries have to

calculate the amount of money to be paid as contribution to pension fund

in order to generate a certain income level post-retirement. Actuaries in

administrative positions have to explain technical matters to executives,

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government officials, shareholders, policyholders. Actuaries working in

tandem with government/ government agencies are responsible for

designing social security and Medicare plans. Many of these professionals

work as independent consultants providing actuarial advice to clients for a

fee. Some also provide investment advice. 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.

Some of the potential employers are :

Life Insurance

1. AMP Sanmar Life Insurance CoLtd;

2. Allianz Bajaj Life Insurance Co Ltd;

3. Birla Sun Life (Distributor Co Ltd);

4. Aviva Life Insurance Co Ltd.;

5. HDFC Standard Life Insurance Co Ltd.;

6. ICICI Prudential Life Insurance Co Ltd.;

7. ING Vysya Life insurance Co Ltd;

8. Om Kotak Mahindra Life Insurance Co Ltd.;

9. Max New York Life Insurance Co Ltd.;

10.Met Life Insurance Co Ltd.;

11.SBI Life Insurance Co LTD;

12.TATA AIG Life Insurance Co Ltd;

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13.Life Insurance Corporation of India

Non-Life Insurance

1. Bajaj Allianz;

2. HDFC Chhub GIC ltd;

3. ICICI Lombard General Insurance Co Ltd;

4. IFFCO-TOKIO General Insurance Co Ltd.;

5. Reliance GIF;

6. Royal Sundaram GIC;

7. Cholamandalam GIC;

8. TATA AIG;

9. Oriental Insurance;

10.United India Insurance.;

11.National Insurance Co;

12.General Insurance Corporation;

13.New India Assurance Company

Actuarial Apprentices with LIC

The Life Insurance Corporation of India takes in candidates who are

Graduates/ Postgraduates with Mathematics and Statistics as main

subjects with 60% or more marks in aggregate and coming in the age-

group 18-25 years. The selection is based on a written test conducted by

LIC which consists of two papers. Paper I includes Essay Writing (Hindi or

English) and paper II comprising of Mathematics or Statistics or Actuarial

Science. Candidates who have passed one or more examination of the

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ASI or Institute of Actuaries (London) or those having PG Diploma in

Actuarial Science with more than 50% marks in aggregate are exempted

from appearing for the exams.

REMUNERATION

If you can survive the grilling tests, there is a payoff - the median annual

salary for an actuary is handsome. Actuaries are globally in demand and

can command hefty pay packets, salaries and perks. No wonder then that

this profession has been rated among the best jobs in the US.

In India the trend is slowly picking up. Stipend for an actuarial trainee per

month in India is around Rs 25,000 per month. Insurance companies and

consulting firms give merit to experience and qualifications with salary

packets ranging from 8 lacs per annum for beginners to around 40 lacs

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per annum for those in senior positions. In UK a qualified actuary can earn

20 lacs per annum.

CONCLUSION

An actuary is an individual who has many duties and responsibilities

concomitant to their position. If one in this job role has excellent analytical,

comprehension, mathematical and public speaking skills, they will most

likely be individuals who excel at their job and produce the highest quality

work product possible. If one has all of these aforementioned skills, the

position of actuary may be the perfect one to fill.

An actuary is the technical expert on life insurance matters studying the

mortality of the insuring public, evaluating the financial condition of the

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insurer, determining the policies to be offered and the premium to be

charged, determining the policies to follow in underwriting an investments

of its funds, deciding on the bonus that can be declared on the

participating policies and so on. A good actuary is a good economist, a

good statistician and a good security analyst.

Every well-managed insurance company will have an actuary to

continuously study its operations and advice the management on the

appropriateness of their policies. The periodical valuation of a life

insurance company, required to be conducted as per the provisions of the

Insurance Act, is the responsibility of the actuary. The premium proposed

to be charged by the insurer, has to be certified by the actuary before they

are submitted for the approval of the IRDA.

actuary project

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