Actuarial Science deals with the concept of studying financial risks. It is done using Statistics and Probability in the field of Mathematics. Today, many universities and colleges around the globe provide a graduate degree in this subject. However, it is challenging to crack a degree in this field. Only candidates with sharp technical knowledge, analytical and Mathematical skills can study Actuarial Science without issues. That is why they can even receive an Actuarial certificate service after completing their course.
If you are also looking to study Actuarial Science in the coming years, here’s some standard information about the types of Actuaries and their roles.
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1. Life Insurance Actuary
These Actuaries work for reinsurance and insurance firms. A Life Insurance Actuary may help insurance companies build proper prices around each policy they sell yearly. They also work closely with these firms to design premium packages for potential buyers. Life Insurance Actuaries do their task by using mortality rates to identify the percentage of individuals that will die in a year. Since these claims are very tough to predict, Life Insurance Actuaries must work hard on their skillsets.
2. Health Insurance Actuary
Similar to how Life insurance Actuaries work with Life Insurance companies, even Health Insurance Actuaries work with Health Insurance firms. They help accurately predict the healthcare costs covered under a specific insurance contract. Various factors are involved in the prediction of this subject. Occupation, history, and geographical location are also considered for this purpose. These Actuaries may also design Group Insurance plans and offer policies to diverse individuals irrespective of their employment and non-employment.
3. Pension Actuary
Pension Actuaries estimate an individual’s retirement benefits and the employer’s contribution. Their estimations are backed by numerous factors ranging from disability, retirement, death, and even employment termination. The future economic events, namely salary increases and interest rates, are also considered for accurate prediction by the Pension Actuaries.
These Actuaries do not deal with any form of insurance products. However, they may be responsible for curating and putting a price on the investments. This eventually helps family members and individuals to prepare themselves financially for their retirement days.
4. Investment Actuary
These Actuaries generally manage investments or offer real-time advice on how to manage the investments. However, their primary focus is on risk management. Investment consulting, retail financial advice, and investment banking are some of the main fields where Investment Actuaries’ work. They may also be equally responsible for working in the derivatives, property, and capital markets. Naturally, Forex is also a part of the list.
5. Finance Actuary
Capital management, corporate finance, and financial reporting are some of the main fields where Finance Actuaries work. They have in-depth knowledge about insurance firms and other related financial organizations. Finance Actuaries are also fairly responsible for analyzing data and mitigating the risk of financial concerns. As such, they are similar to financial analysts.
End Note
These are some of the main types of Actuaries that are well-reputed and well-paid. Scout from this list if you are interested in being a successful Actuary one day.
