Who is an Actuary?
The Actuarial profession is a niche one with many not even knowing a whole lot about it. This makes the circle of Actuaries an exclusive group of curious, highly skilled and greatly respected people.Actuaries “sit in the control room of an insurance company” in some sense. They price policies, predict need for reserves and liquidity to meet future obligations and ensure that insurers are protected against the various risks that they are exposed to. This means they are very well compensated and highly regarded for their work.
Actuaries tend to be people who get their daily dose of excitement from problem solving. Whether they are working as consultants to insurance firms or working on the carrier side (with the insurer itself), they always take it upon themselves to study the market, the risks it exposes their client/firm to and try to strategize accordingly. The work is challenging and exciting, with there being loads to learn.
Whether you are a “specialist” who likes to delve deep into topics, or possess the temperament of a “polymath” who likes to know a little about everything, this profession is for you. You can on one hand, use your mathematical and statistical skills to find better ways to price policies to respond to market conditions better, or instead, apply your skills to offering risk management advice to your various clients offering you various challenging problems to solve.
Actuaries work in many different areas within and outside of insurance. Let’s take an example of their work within insurance. Say you are the lucky owner of a brand new car. You now need an insurance policy to cover yourself for any mishaps. Do you know how much you’ll have to pay for it? An underwriter does, thanks to the actuary. The actuary would compile a set of “Rating Factors” based on the age of the driver, the geography in which they reside etc. Then, each time someone goes to buy a policy, then underwriter will apply these in a simple formula to present you with a “quote”. The rating factors could increase the charge on a younger driver for instance because it has been observed that they tend to drive more recklessly. In this fashion, an actuary turns the real world into an interesting math problem and solves it to offer real world solutions.
As an actuarial student, you will get a taste of the kind of variety that few qualifications offer. For instance, CT3 is Statistics 101 in a capsule, while CT7 is Economics 101 in a capsule. CT2 will tell you about financial accounting and reporting, while CT4 will teach you how to model. CT5 will give you a background on how policies are priced, while CT6 will tell you a bit about the way general insurers find their probability of ruin and how they create reserves to avoid the same. This makes an actuarial professional genuinely multi-faceted in their study and fit to be someone who studies risk and knows insurance inside-out.
Although actuaries are technically strong, they are not limited to this aspect. They make great consultants with top-notch presentation skills, business awareness and people skills. For instance, the CT9 module on business awareness is all about describing what’s going on in the economy and the world of finance. The CA3 is all about presentation skills.
Long story short, Actuaries are unique individuals for a penchant in finding sustainable ways out of problems and making educated guesses and technically backed forecasts of what’s going to happen next. Whether it is to do with forecasting the development on future claims on their firm’s policies or computing the probability of someone winning a game of poker! Numbers and they are the best of pals and with a sprinkling of their sane judgment, an actuary aims to interpret the world around them and make it better for the people who are a part of it.
Sankhyiki belongs to its students, and its students deserve mentors who are warm, supportive and experienced at what they do.
Akshay ChauhanFounder & Director
Mr. Akshay Chauhan, has created a name for himself through years of teaching.
Ravinder Pal(Faculty, CT1,CT5 and CT7)
He has a knack for simplifying complex material and helping students take in information.
Naveen Bhutani(Faculty, CT2)
Naveen sir is a Chartered Accountant by profession with a Masters’ in Commerce.
Akshay Sharma(Faculty, CT3 and CT5)
. With a Bachelors' degree in Science and a strong background in Statistics.