Risk and loss are factors that exist in any business, and are bound to occur in every company be it big or small. Although these factors are inevitable, a proper analysis of the condition of a company can help in mitigating the risk and avoid losses to a certain extent. There are experts now who perform an actual job of just this. Analyzing the risk an organization might face, and working towards avoiding or overcoming that risk has become a career, popularly known as Actuarial Science.
Though not many are aware of this career, it is a growing one especially in India. So let’s understand what it actually is. Actuarial Science deals with studying, assessing, analyzing, predicting and interpreting of risks, an insurance, financial institution and other similar organizations might face. An expert possessing the qualifications of Actuarial Science is known as an Actuary.
The most common job role that the career of Actuarial Science involves is, studying the risks most likely to occur, develop strategies to manage those risks, taking care of the internal management of the organization, building security schemes to protect the organization from risks and losses, product pricing, deciding the premium charges, conducting peer reviews, etc.
Those willing to pursue Actuarial Science as their career must compulsorily be good at mathematics, statistics, probability principles, economics, demographics, and finance.
To pursue an education in the field of Actuarial Science, there are certain eligibility criteria that you need to fulfill:
- You must have completed the 10+2 education from recognized educational institutes
- You must be 18 years of age
- One must enroll themselves in Institute of Actuaries of India (IAI). It is an official institute appoints actuaries all over India.
- You must clear the Actuarial Common Entrance Test (ACET) which has a total of 15 subjects of Financial Mathematics, Business Economics, Statistical Methods, Enterprise Risk Management, etc. This test is conducted by IAI bi-annually.
Even if you fail to clear all subjects, there is no need to worry, as even after clearing just 2-3 subjects, you still have career opportunities in the field.
Actuaries help organizations understand and manage risks by applying their mathematical and statistical skills and knowledge, interpreting figures and laying out plans to protect the companies from losses. Actuaries mostly work for insurance and financial organizations. However, they are not restricted to this. They can work as consultants for other companies, government organizations, banks, etc. The salary of actuaries in India is somewhere between 5-20 lakh per annum based on your skills, educational qualifications and work experience.
Here are some of the colleges/universities providing UG/PG courses in Actuarial Science:
- Amity School of Actuarial Science – Noida
- Christ University – Bengaluru
- Bishop Heber College – Tiruchirappalli
- Chandigarh University- Chandigarh
- Narsee Monjee Institute Of Management Studies – Mumbai
- Columbia University, USA
- University of Waterloo, Canada
- Dalhousie University, Canada
- Georgia State University, Georgia
- Michigan State University, USA
The entire world which is now living in the most uncertain times ever, a career in Actuarial Science is sure to guarantee only positive returns. It surely will provide complete job security especially in the current situation when companies across the world are trying to mitigate losses and revive themselves. With a large spectrum of new career options to choose from, we now have yet another fairly new career choice that you must definitely consider.