You 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.
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 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 recognised 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.
Eligibility : The Actuarial Society of India and Institute of Actuaries,
UK are professional examining bodies which conduct certificate, associateship
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Job Prospectus and 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... Click
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Remuneration : If you can survive the grilling tests, there is a payoff
- the median annual salary for an actuary is handsome.. Click
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Institutes : Some of the prominent institutions offering courses in
actuary can be had from the following links.. Click
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