Thursday, March 22, 2012


Actuaries are the back bone for the insurance company. Without them, there is no concept of insurance company. They work for insurance companies and predict the profitability of various customers by using the mathematical and statistical formulas. An actuarial degree makes you perfect in Mathematics, Statistics, Economics, Finance and as well as in other subjects of it. After the study of college actuaries spend 5 to 10 years for taking the specialized actuarial exams to become Fellows of the actuarial society. Actuaries estimate the present value cost for future uncertainty like accidents, deaths, natural disaster, disability and lawsuits. Actuaries are engaged in life insurance, retirement benefit consultancies, asset management, post retirement medical benefit, EOBI and provisional social security institutions for the cost of retirement benefit plans. They also involved in periodic valuation of life insurance business, pensions and other investment benefits liabilities.  Some fields of actuaries are as follows:

With regularly predictable patterns in diseases and life expectancy, it is possible to balance the random events of life and determine a person’s risk to the insurance company. The insurance companies never insure a person who is too risky because they would lose money on that particular person.

Actuary determines the risk that affects the life of person’s life. The main factors are age, disease, likelihood of casualty and other. The “other” factors cover the incidentals of risk that may come person to person.

Without insurance companies it would be very difficult for the average person to survive with catastrophic or random events. Car crashes, plane crashes and natural phenomenon. Insurance companies factor the likelihood of these events into the rates they charge. In the event that something happens the adjusted rates allow them to cover their customers.

The actuary profession is also vital in determining payouts for pensions. The company would go bankrupt if people were to live too long or the pension payments were too high. So in order that pensions are viable, something that many people depend on. Therefore actuary creates and design the pension plans. They design fair plans that benefit all without leaving the company destitute. 

Actuaries not only to design and creates the plans for life insurance, they are also responsible for certain types of short-term insurance. Short-term insurance are affected by many other factors dealing with people as well as external events.

With life insurance, actuaries calculate the health risks over a lifetime, but in some cases they need to address the short-term risks as well. Actuaries need to be able to factor how changing factors affect a policy over the course of a year. For example: if a crime rate rises significantly, then the insurance company will most likely charge more due to increased risk for someone living in that particular area.

Some of the time actuaries use to determine the sentences of criminals. This is variables and practices of an actuary. 

Deaths and casualties are times when a company has to pay the money to the policy holder. Death and casualties are different words. Death is a natural occurrence due to the age factor or disease while casualties are unexpected deaths of individuals. For example: a car wreck or plan crash would be a casualty. Pay the money to the policy holder means that the money is an amount of the life insurance. A $10,000 policy would pay a family $10,000 upon the death or casualties of the holder.


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  2. These exams are highly competitive and are esteemed tests too. With a bit of intricate research on the Internet you will stumble upon a multiplicity of educational establishments which proffer apt training on Actuarial Science in Delhi. The exceptional scores in these exams make you eligible for any other esteemed engineering institutes. The availability of scholarships, fellowship, financial aids and Public Sector job recruitment through these exams attract many an intellectuals into appearing in these exams.