~ACTUARIES~

Actuaries

INTRODUCTION

Actuaries conduct financial analyses and manage financial risks by employing skills in interest theory, finance, economics, statistics, probability, and modeling. As such, actuarial skills are transferable to any industry that must mitigate risk. Because actuaries wear many hats, the career outlook is dependent upon the industry in which they work and the type of work they do.

Actuaries must have a strong background in mathematics, and are required to pass a series of examinations to gain full professional status. In the United States, about 6 out of 10 actuaries are employed in the insurance industry. Employment opportunities remain good for those who qualify because the stringent qualifying examination system restricts the number of candidates.

JOB DESCRIPTION

One of the main functions of actuaries is to help businesses assess the risk of certain events occurring and formulate policies that minimize the cost of that risk. In general, actuaries help people plan better for the future by controlling or reducing financial risks associated with retirement, sickness, disability, unemployment, property loss and damage, investment policy, dying too soon, and living too long.

Actuaries can work in a number of areas such as insurance, consultancy companies, Bank Negara (which is a regulatory body for all financial institutions) and also various departments under the Ministry of Finance. Other areas include education and research; funds management; commercial industries; investment and corporate finance sectors; merchant banks; and human resources such as drawing up pension and employee benefits.

In insurance, actuaries assemble and analyze data to estimate the probability and likely cost of an event such as death, sickness, injury, disability, or loss of property. They produce probability tables or use more sophisticated modeling techniques that determine the likelihood that a potential event will generate a claim. Actuaries ensure that the premium charged for such insurance will enable the company to cover claims and other expenses, and be profitable. At the same time, the premium must remain competitive with other insurance companies.

In finance and investment, actuaries address questions involving the level of pension contributions required to produce a certain retirement income level and the way in which a company should invest resources to maximize return on investments in light of potential risk. They also devise new investment tools to help their firms compete with other financial service companies.

Employment and places of work

Actuaries have desk jobs and their offices usually are comfortable and pleasant. Some actuaries may travel to meet with clients. Consulting actuaries may also experience more erratic employment, traveling to meet various clients in different industries.

Areas Covered by Programmes

Actuaries need a strong background in mathematics and general business. Usually, actuaries earn an undergraduate degree in mathematics, statistics or actuarial science, or a business-related field such as finance, economics or business.

Typically, a degree in actuarial science will include subjects like economics, probability and statistics, calculus, accounting, corporate finance, risk finance and reinsurance, corporate risk management, and actuarial methods. Students may also be required to take coursework like communications, public speaking, sociology, and computer software and programming.

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VOCABULARIES:

Actuary :

An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms.

Stringent : syn :firm, rigid, rigorous, severe, harsh, tough, tight, exacting, demanding, inflexible, stiff, hard and fast, uncompromising, draconian, extreme.

(adj) strict,precise and exacting.

Assess :

1. evaluate, calculate or estimate the price or value.
2. set the value of a tax, fine or etc.

Insurance : syn : guarantee, (financial) protection.

an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium.

Pension : syn : annuity, welfare payment, allowance, assistance.

a regular payment made by the state to people of or above the official retirement and to some widows and disabled people.

Likelihood : syn : probability, possibility, plausibility.

the state or fact of something's being likely; probability

Premium : syn : insurance charge, bonus, payment, additional fee, bounty.

1. an amount to be paid for a contract of insurance.
2. a sum added to an ordinary price or charge.
3. something given as a reward, prize or incentive.

Erratic : syn : unpredictable, inconsistent, variable, turbulent, fluctuating, unreliable.

not even or not regular in pattern or movement.

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