Actuary an Eminent Job to Pursue

 Actuary an Eminent Job to Pursue

Regina Noelyonita – 12 Science 2

 

“With great power comes great responsibility” Peter Parker, huge salary requires a huge mind. You have probably heard of Actuary, a job that is paid with a huge amount of salary. Lately, actuary has been popular amongst students especially those who love math. But why is actuary so popular? Besides, they are paid a huge amount of salary, an actuary is highly demanded everywhere around the world. Therefore, making them a fulfilling career to pursue and dreamed of by a lot of students. Not only that, but actuaries also have good job prospects and wanted. This surely offers stability and a great opportunity for students, making them an eminent job to pursue. Why so? What makes them highly demanded?

 

For an instant, an actuary’s job is to forecast future risk. In (Sun Education Group, 2018), it is mentioned that the future is abstract yet challenging. Therefore, an actuary’s job is to help predict those risk factors that might happen in the future with the right calculation. Almost every company needs at least an actuary to predict those risks. Hence, this expands the border of jobs that actuaries could pursue. Actuaries could work in various fields such as designing insurance products, determine financial status, make company financial projections, and many more. According to the Bureau of Labor Statistics, the majority of actuaries work in health, life, and property and casualty insurance to structure insurance policies in a way that produces high-yielding yet industry-competitive premiums. As mentioned in (Cabell, 2017), in life and health insurance, actuaries assess risk factors such as state of residence, disability in the population, mortality rates, fertility rate, and even certain lifestyle choices. In property and casualty insurance, actuaries mainly focus on risks factors such as frequency of weather, the likelihood of theft, and many more. Out of insurance, most actuaries provide their expertise by serving as pension actuaries. In the pension industry, actuarial science is used to compare the cost of alternative strategies about design, funding accounting, administration, maintenance, or redesign pension plans (Kagan, 2021). 

 

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Actuarial science is a discipline that applies mathematical and statistical methods to assess risks (Kagan, 2021). In calculating risks, actuaries are required to apply mathematical formulas such as probability and statistics, as well as economics and finance. Therefore, to become an actuary you must love math because as an actuary you will be replete in the realm of math every day. Besides that, to become an actuary you need to pass various examinations to achieve a professional degree. To achieve this degree, it is estimated that it may take six to ten years (Sun Education Group, 2018). Therefore, people who want to be an actuary needs to be voracious and eager in learning, because even after graduating you will have to constantly study. Although it may seem harsh and hard, this is might be great news for you, because not many people want to spare their time and sweat for it making this job even more wanted in a lot of companies.

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           To be an actuary not only do you need to be in love with maths, but you also need a lot of skills such as strong analyzing skills, good communication skills, and great problem-solving skills. As an actuary your job is to examine, analyze complex data and identify patterns and trends to determine which factors are responsible for specific outcomes therefore, you must have a strong analyzing skill to start with. Other than that, an actuary also needs to have good communication skills. Although some people might think that actuaries are people that are so invested in their computers, an actuary also needs good communication skills because, an actuary needs to be able to explain their idea and the result of their analyzed data to other people who didn’t do the calculation such as the company or even shareholder in a way they could understand (Singal, 2017). Besides having strong analyzing skills actuaries also need great problem-solving skills, so that they can draw the right conclusion from the data they analyze (Ismi, 2021). Lastly, as an actuary have to have a sound understanding of business and finance, because more often you will be responsible for evaluating insurance or pension plan, advising businesses on how to limit exposure to financial risk, and providing banks with expert opinions on maximizing returns for a variety of investment products (Johnston, 2019). Most of these skills are essential in almost every job, making actuarial science students have a broad horizon of jobs that they may pursue.

 

           Hence, an actuary is a job that tries to prognosticate future risks. Actuaries have a broad selection of jobs to pursue and are demanded by a lot of companies. Not only that but actuary is also related in the realm of math, congenial for students that are avid learners. Last but not least, actuaries have a lot of skills that are essential in every job. That is why actuary is needed, ultimately in the future time. 

References

Cabell, G. G. (2017, September 26). Importance of Actuarial Science. Retrieved from the classroom: https://www.theclassroom.com/importance-actuarial-science-17415.html

Ismi, T. (2021, February 25). Mengenal Tanggung Jawab Profesi Aktuaris dan Berbagai Skill yang Dibutuhkan. Retrieved from glints: https://glints.com/id/lowongan/aktuaris-adalah/#.YTDu_o4zbIV

Johnston, M. (2019, September 27). The Top 5 Skills Every Actuary Needs. Retrieved from Investopedia: https://www.investopedia.com/articles/investing/052015/top-5-skills-every-actuary-needs.asp

Kagan, J. (2021, February 27). Actuarial Science. Retrieved from Investopedia: https://www.investopedia.com/terms/a/actuarial-science.asp

Singal, G. (2017, June 1). Perceptions and Misconceptions of Actuaries. Retrieved from Actuaries Digital: https://www.actuaries.digital/2017/06/01/perceptions-and-misconceptions-of-actuaries/

Sun Education Group. (2018, November 29). 5 Important Facts About Actuary Profession. Retrieved from Sun Education Group: https://suneducationgroup.com/en/akademic-en/facts-about-actuary-profession/