Actuary is a professional working in the insurance sector who assess the financial impact of an uncertain future event and predict to a certain degree of correctness as to what amount of money a policyholder should pay as a premium or what sum should be given as a pension amount or returns by the company in case of any disaster to the policyholder. In a sense, they have the responsibility of calculating insurance risks and premiums with their expertise and skills as a statistician, economist, and financier and employ scientific and mathematical techniques of probability, compound interest, law, marketing, management, etc to predict the outcome of future contingencies and formulate solutions to rationalize the financial severity of such events.
Although this profession is in existence since 1848 when the Institute of actuaries was established in London, initially it was limited to Life insurance only, now with the opening up of world trade and globalization, these professionals are sought after by non-life insurance organizations too like banks, stock exchange, etc.
Because of globalization demand for the experts in this profession is far lagging behind its supply. Thus the importance of the Actuary has been increasing at a fast pace.
Educational Qualification
A person is eligible to be considered for admission as a student member if he/she satisfies one of the following criteria.
Age Limits
The minimum age to become an Actuary in India is 18 years.
To be an Actuary one has to follow the given steps:
Step 1
To become an Actuary, one needs to take up a course including 15 subjects with 14 compulsory and 1 optional subject of a given list of subjects. These subjects are grouped into 100 Series (CT), 200 Series (CA), 300 Series (ST), and 400 Series (SA).
1. The subjects in CT Series cover Mathematical, statistical, economic, and financial techniques, which are applicable internationally.
There are 9 Subjects in the CT series that are listed below:
CT series (Core Technical Stage)
2. The CA series contains a question of general actuarial interest and aims to test the communication skills of the students
There are 3 Subjects in the CA series that are listed below:
CA series (Core Applications Concepts)
3. The ST Series covers investment, Life-Insurance, General Insurance Pensions, and other employment benefits
There are 6 Subjects in the ST series that are listed below:
ST series (Specialist Technical Stage) - Any two subjects
4. The SA Series subjects focus on the practical application of the Principles covered in the corresponding ST Series subjects and earlier subjects.
There are 6 Subjects in the SA series that are listed below:
SA series (Specialist Application Stage) Any One Subject
Step 2
Certificates in Actuarial Techniques
Step 3
A student passing all the subjects including SA Series and upon satisfying the other criteria specified for the purpose becomes eligible to be admitted as a Fellow member of the Society and can use FASI against his/her name as a recognized fellow.
Duration of completion of the Course
There is no fixed duration to complete the course. The aspirant has to clear the Entrance Examination and the 15 subjects prescribed. A student can attempt any number of subjects at a time and in any order.
However, it is a better option to take the subjects in the numerical sequence in which these are numbered and not more than two or three at a time.
Test Centres
The examinations are held every year in the months of May/June and October/November at the following given centers.
Note: Candidates who wish to appear from overseas centers should make a formal request to IAI.
The work of an actuary involves a lot of number crunching and the nature of work is quite demanding both physically and mentally, nevertheless, it offers rewards in terms of intellectual challenge, status, financial returns, and above all job satisfaction in return of all the hard work and dedication one has to put in doing this work. As their judgment is the basis of decision-making for many business activities, their career paths more often than not lead to upper management and executive positions but to reach the apex the aspirants have to accomplish their work in a better manner.
Because of the globalization of economic activities the importance and scope of these professionals have increased many folds. Actuaries have scope for career growth not only in India but also in some of the well-developed overseas countries like the USA, UK, Canada, and Australia, etc to name a few of them. Some of the potential employers of these professionals in the corporate sector (both private and public) are:
In the field of Life Insurance
Non-Life Insurance
Actuarial Apprentices with LIC
The Life Insurance Corporation of India takes in candidates(on the bases of a written selection test) who are Graduates/ Postgraduates with Mathematics and Statistics as main subjects with 60% or more marks in aggregate and coming in the age-group 18-25 years.
Contents of Selection Test
Candidates who have passed one or more examinations of the ASI or Institute of Actuaries (London) or those having a PG Diploma in Actuarial Science with more than 50% marks in aggregate are exempted from appearing for the exams.
Because of the global demand for the Actuaries and supply is far less than the demand these professionals can bargain for hefty pay packages from their employers. On this basis, this profession is rated as one of the best in the US economy. In India too with the opening up of the financial and insurance sector for the private players, the trend is picking up. The stipend for an actuarial trainee per month in India is around Rs.30,000 per month. Whereas experienced and qualified professionals can demand salary packets ranging from 8 lacs per annum for beginners to around 40 lacs per annum for those in senior positions.