Actuary essay

Actuary essay

Introduction

I have always looked forward to pursuing a career in actuarial science and became an actuary. When I was growing up, I had an experience that intrigued me the desire to become an actuary and make a difference in peoples’ lives. Peter, my best friend’s family, was involved in a fatal car accident, my friend’s parents died on the spot with my friend sustaining severe injuries and eventually losing both feet. The family had not taken an insurance cover, and we had to fundraise money for my peter to undergo surgery. I didn’t like the experience, and that stroke a desire in me to become an actuary and make a difference in people’s lives. I have been following Roger Hayne, the chief and advising Actuary in Los Angeles, and he inspires me; he is my role model, and I look forward to accomplishing more than what he has achieved. I should pursue this career.

An actuary is a professional who majors in scrutinizing financial risks. It’s a business profession rather than a technical profession. Mathematica, Financial theory and statistics are the core areas required by an Actuary to examine events that will occur in the future, assess risk, especially for insurance companies and pension programs. Other areas of specialization necessary to become a skilled actuary are computer science to be able to use and develop spreadsheets and database software, economics, statistics, and communication skills to be able to pass information appropriately to clients and managers. Accountants and auditors, market research analysts, Financial analysts, cost estimators, and budget analysts are some professions related to an actuary.

An actuary is charged with collecting and compiling data and analyzing it to determine the probability of the events occurring and estimating the financial or economist cost that will be incurred. Preparation of reports and presenting them to the relevant clients, stakeholders, and management. They ensure that premiums used by insurance companies are set at the correct rate and that finances available are adequate to cover disasters that may occur. Actuary career is flexible, and a person can specialize in different fields such as health insurance, enterprise risk, pension and retirement, life insurance, and casualty insurance. The national average salary for an Actuary is $102,880 per annum, according to statistics carried out in May 2018. The lowest pay is below $61,140, while the highest payment is above $186,110 per annum. St Francisco pays an annual average salary of $138,579.

For one to be qualified as an actuary, they need an undergraduate degree in an analytical field such as mathematics, actuarial science, and statistics. After completion of the undergraduate degree, other courses that should be undertaken are economics, computer science, writing corporate finance, public speaking, and applied statistics. A series of 10 exams must also e completed before qualifying. The reviews can be taken in conjunction with the undergraduate degree after finishing the bachelor’s degree. It takes around seven to ten years to qualify as an Actuary. The undergraduate course takes between three to five years in the USA and Canada. The exams take about four to seven years to complete and attain certification. After certification, two or three years are required to become a fellow in Actuary. There are two levels of certification: the fellow and associate certification. In the united states, there are two accrediting bodies, the Casualty Actuarial Society, which accredits actuaries in the with property and casualties, and the Society of Actuaries, which certifies actuaries in the life, health and retirement insurances. The most renown universities and colleges offering Actuarial Science are in descending order are Columbia University, University of Pennsylvania, the University of Leicester, which offers distant learning, Heriot university in the United Kingdom, and the University of Waterloo.

Resumes are uploaded by candidates looking for a job or internship. The resume is a summary of the person’s academic achievements, skills, exposure to the market through internships and communication skills through the written language. Post for jobs used for Actuaries is specific in what is required. A GPA (general aggregate points) should be a minimum of 3.2; the person should have at least two-level exams for a start, work experience is also a requirement, computer skills at least some knowledge in excel and grammatical errors are checked for to assess the communication skills of the candidate. An online interview with Gloria Yu, the director of Deloitte actuaries and consultants in Sydney, shows that she took an undergraduate degree in actuarial science at the UNSW (University of New South Wales). She won a scholarship to the university. She did some of her exams while in college. She had an opportunity to work in different insurance companies while in school. The companies were dealing with life insurance and general insurance. Upon her graduation in the year 2004, she got employment at West park general insurance and KPMJ general insurance before moving to Deloitte, where she is currently the director. She had to work hard while in school to attain high grades, multitask by taking some of her exams while doing an undergraduate degree and also working, which gave her an upper hand in employability.

According to the bureau of labor and statistics, the Actuary career is likely to grow by twenty percent from the year 2018 to 2028. The number of new jobs will increase by five thousand. This growth rate is above average compared to all other occupations. In the future, more Actuaries will be needed to be attributed to the fact that the economy is growing; thus, new companies will be emerging, and Actuaries will be required to assess the company, the latest products manufactured. Natural calamities and natural disasters are developing risks, and actuaries are still needed to evaluate and assess the risks involved.

Like any other career, an actuary has its pros and cons. The advantages of Actuary are: there are many choices and different working environments. One can work in a bank, hospital, or insurance company. One can specialize as a casualty actuary, health insurance actuary, or life insurance actuary. The remuneration is exciting, and there is a significant growth rate; therefore, changes in employment are great. Actuary allows one to become multiskilled. One requires several skills to work. The job is flexible one can work anywhere in any place. A person works typically in an office setting without any manual work, consulting actuaries may travel to meet their clients. The stress levels associated with this career are average, which is a good thing. Actuaries work full time, and others may work for forty hours per week; it depends on the employing organization. The disadvantages of Actuary are: it takes a long period for a person to become fully qualified. Ten years is a long time to acquire certification. It requires a lot of dedication to study for ten years and pass a series of ten exams. Many students are now undertaking actuarial science, increasing the level of competition in the field. Several courses are required to qualify as an actuary. Fail in one of the courses can ruin your career.

From a newspaper headline, Actuary is well paying compared to other related professionals such as accountants and budget analysts. The job market is now competitive, as many students are now taking a bachelor’s degree in the field. Due to competition, it’s now a requirement for those seeking jobs to have valid work experience and at least two-level exams as compared to the past years when these were not requirements. The North American Actuarial Journal (NAAJ) addresses many issues concerning the actuary profession. It deals with local and worldwide issues concerning actuaries. Benefits employees enjoy. It addresses an area of further research, employee policies. From the journal, it is evident that Actuary, like any other career, faces challenges. It has its benefits and disadvantages. Before one settles down for any job include Actuary, they must take all the pros and cons into consideration to make an informed choice. An article from the Society of Actuaries (SOA), provides a lot of educative information for actuaries. It contains current information on the job market and international trends. It evaluates the gaps in the career and informs its members. New concepts are thought to enable its members to keep abreast of the current need in the market. From the article, it’s evident that there are many untouched potential areas that actuaries can venture. It also provides research topics for its members to consider.

Conclusion

Taking into account all factors, I settle down with Actuary. Firstly, I love being an actuary, as stated early. An actuary is a flexible career than can enable me to work at any place. I will work in an office either fulltime or as a consulting actuary, traveling to meet my clients, making the career exciting and fun. The remuneration for an actuary is well paying to enable me to lead a good lifestyle and save some money for investments. An actuary has growing mobility upward, increasing the chances of getting a job compared to other careers. I can start working after completing at least two-level exams, meaning I can earn while still studying. An actuary will enable me to acquire several skills in computer, writing, public speaking, finance, statistics, which will not only be of importance in my career life but also will enhance me a person. There are a lot of choices to choose from. I can work in a bank, hospital, or insurance company. I don’t need to work or be employed for the rest of my life, and I can become an entrepreneur and set up my own insurance company. Setting up an insurance company will create new jobs for more people, thus improving the economy of the country as well.