An actuary is a person who analyzes risks. They must have a variety of skills to help predict future events based on past occurrences. They are an important asset to businesses and help play a very important role in the financial stability of organizations. Their career is appealing because they usually work in environments that are of low stress, and are able to actually use the education they learned to intellectually solve problems. They are essential to companies in the insurance industries to help them analyze the risk and benefits of new clients. For example, they use statistics and probability to determine occurrences such as illness or death in elderly clients or even clients that may have a substantial medical history. Things that may affect the probability of these clients can include things such as age, underlying conditions, smoking habits, and so forth. Probability will help them determine their risk associated with their medical history.
To obtain a position as an actuary can be quite difficult. Many companies look for experience when hiring actuaries so it is important that you obtain the necessary internships to help gain experience in the field. Some colleges actually offer an actuarial science degree, but you can become an actuary with other bachelor’s degree. Some favorable degrees might include finance, mathematics and statistics. These fields place an important role in helping to analyze the financial risks of a company. Economics is another degree that may be favorable, as their study in economics might help them determine the risks associated with certain decisions with-in an organization. Once you receive a college degree, to become an actuary you must then pass a series of examinations. These exams can take years to complete, but you can start working as an assistant usually after passing the first two exams. Each company varies on their qualifications so it is important to factor what you need specifically for each company. If you are able to get a job before completing all of the exams, many companies will help provide the necessary means to help you successfully pass the exams. There are several information and study sessions that you can take part in to help pass the test.
Becoming an actuary can pay off well. It is one of the most highly paid fields, and in Australia it is the highest paid job. They are paid well because a company’s value can depend on the decisions they make. Once you gain the knowledge and experience you will be compensated well for your achievements. Actuaries are needed in many different companies, not just insurance companies. For example, they also work in fields like risk management. When a company is looking to invest some of their assets, they may turn to an actuary first to determine the risk of the investment. The actuary will then determine the risk based on their knowledge of math, statistics, probability, economics, and finance. They will help determine if the investment will result in a potential gain for the company or a loss.