ABOUT THE ACTUARIAL PROFESSION
Actuarial Science is the discipline that applies the methods used in Mathematics and Statistics to assess the risks in insurance, finance, pension, and other industries and professions. The Profession takes a long term view and uses Actuarial Control Cycle (ACC) to solve a problem. While solving the problem, ACC specifies the problem and then develop the solution to the problem specified. The solution provided is continually monitored under general business environment using strict professionalism for which the members of the profession need to comply and adhere to the professional standards and guidance notes.
WHO IS AN ACTUARY?
The Actuaries Act, 2006 defines ‘Actuary’ as under; "Actuary" means a person skilled in determining the present effects of future contingent events or in finance modelling and risk analysis in different areas of insurance, or calculating the value of life interests and insurance risks, or designing and pricing of policies, working out the benefits, recommending rates relating to insurance business, annuities, insurance and pension rates on the basis of empirically based tables and includes a statistician engaged in such technology, taxation, employees benefits and such other risk management and investments and who is a fellow member of the Institute; and the expression "actuarial science" shall be construed accordingly.
There are mainly three classes of membership - Student, Associate and Fellow. The Fellow of the Institute of Actuaries of India is the highest qualification.
ABOUT INSTITUTE OF ACTUARIES OF INDIA (IAI)
IAI is a statutory body established under The Actuaries Act 2006 (35 of 2006) (herein under referred as ‘the act’). It regulates the Actuarial Profession in India. The provisions of the said Act have come into force from 10thday of November 2006, in terms of the notification dated 8th November 2006, issued by the Government of India.
The roots of IAI goes to the erstwhile Actuarial Society of India (ASI) which was established in September 1944
Objects of Institute;
to promote, uphold and develop the standards of professional education, training, knowledge, practice and conduct amongst Actuaries; to promote the status of the Actuarial profession; to regulate the practice by the members of the profession of Actuary; to promote, in the public interest, knowledge and research in all matters relevant to Actuarial science and its application; and to do all such other things as may be incidental or conducive to the above objects or any of them.
JOB OPPORTUNITIES IN INSURANCE SECTOR
The Actuarial Professionals may work in any field as specified under ‘the act’. Every area of business we see around invites risks and so an actuarial career offers many employment options, including but not limited to the banking, insurance, healthcare, pensions, investment and may other non-financial areas.
In Insurance Sector, traditionally the Indian Actuaries and other classes of Actuarial Professionals have worked in the past and are currently working at national and international level in all the work areas of an Insurance Company. However the following are the primary areas where they have unparalleled advantage;
Risk Management; Product design and Pricing; Managing Policyholders reasonable expectations be it benefits/ bonus distribution, etc. Policy Illustration Managing Investments/ Asset Liability Management Actuarial Models, Predictive/Stochastic modelling Information Technology New Initiatives Compliance Advice to other departments e.g Policy servicing/HR (efficiency/employee benefit)/IT,etc Valuation of Liabilities; Solvency Maintenance; Analysing the business parameters/experience e.g persistency, claims, etc. and their reporting (Big Data Analysis) Shareholders’ reporting Regulatory Reporting Insurance Education and Training Reinsurance treaty maintenance Underwriting ETC.
ROUTE TO BECOME AN ACTUARY
Currently the ACET is entry gate to get eligible to write actuarial examination. There are thereafter various stages Core Technical (CT), Core Application (CA), Specialist Technical level (ST) and Specialist Application Level (SA) which student need to pass or get exemption before attaining fellowship.
There are mutual recognition with the international actuarial bodies as well.
The details of the examination, exemptions and other information about the Actuarial Profession are available in www.actuariesindia.org or students may write to IAI office for any further information.