Actuary

This is an article i wrote for the Pakistan Society of Actuaries.

It may seem like the name of an unknown heavy metal band, however it’s something quite different. Actuaries are a very elite group of professionals who use mathematics and statistics and apply them in business.

There are a lot of students with exceptional mathematical skills who are not interested in the conventional fields such as engineering. These people usually end up doing Chartered Accountancy or Masters in Finance. Though credible options these do not always suit them. Actuarial science on the other hand is one field that they might find challenging and satisfying.

With a core of mathematics and statistics, actuaries use mathematical and economical theories to solve complicated business problems. Traditionally actuaries are employed by life insurance companies in which they analyze data and use models to determine premium rates and profit margins. Contrary to common perception they are not involved in selling policies or handling claims. One can say that they create policies by carefully modeling data to ensure profits to both parties. The work of an actuary is not limited to the insurance sector alone. Being experts in enterprise risk management and specialists in finance and investment, combined with a strong foundation in financial mathematics, actuaries can shine in any sector ranging from business consultants to banking to financial advisors, to name a few.

How to become an actuary?

It kind of follows the same pattern as CA or ACCA. One can enter this field right after A-levels or after graduation. There are two renowned boards the first is the British board known commonly as the Institute of Actuaries (http://www.actuaries.org.uk). The other is the U.S.A board called Society of Actuaries(http://www.soa.org/). Both are globally recognized. Each has a set of exams that one must pass or obtain exemptions for in order to qualify as an actuary. Exemptions for the Institute of Actuaries exams can be obtained if a candidate has a degree from a recongnized institute.. The overall syllabus is basically the same, the only difference is the number of papers and the format. Visit their respective websites for information.

The whole course can be broken down into two broad subheadings: For the Intitute these are Core and Specialization, for SoA these are Associateship and Fellowship . Subjects in Core/ Associateship include: financial maths, statistics, probability, economics and communication skills. Fields for Specialization/Fellowship include: general insurance, life insurance, finance and investments, enterprise risk management, pension, and health and care.

Actuary was rated as the #1 job in America last year, considering salary, stress, advancement prospects and job satisfaction.

Lets look at the local scene. Here KU and CBM have courses in actuarial sciences but these don’t provide any exemptions. Many life insurance companies and actuarial firms employ students after A levels as ‘actuarial trainees’. They give you a salary, training, study material and hep students in any way with their exams. State life, NJI life, EFU life, Akhter and Hasan, Sidat Hyder and Morshed associates are companies and firms that have these trainee programs. You can contact their HR departments for more details.

Actuary is a rare profession even more so in Pakistan. Here the total number of fully qualified Actuaries is under 20! Anyone can join the field but before taking a decision do your own researches on it even meet people if you get a chance. Be absolutely sure about it before taking an initiative. The exams are tough and trainee programs are demanding so you don’t just have to be brilliant but also hardworking. Also if you’re applying straight after you’re A-levels you will probably be missing out on university life so make sure you have thought about it seriously.