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ACTUARIAL SCIENCE

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LEARN AND GROW IN A GLOBALIZED PROFESSION

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Actuarial Science Actuarial ScienceCourse Review Course Review

INTRODUCTION

Remember the 9/11 attacks on the World Trade Center? Or the 2004 Indian Ocean tsunami? Time would heal the

wounds of those emotionally affected by these tragedies. But it would not have been the same for insurers and investment bankers. There would have been millions of dollars worth insur-ance payouts. So many investment plans would have gone for a toss. It is the same with demo-graphic patterns. Take a look at longevity. If it goes up by a year or so, pension payouts will increase by billions.

It is here that actuarial science comes into play. To quote Institute of Actuaries of India (IAI), actuaries or the practitioners of actuarial science “make financial sense of the future.” According to IAI, “Actuaries are experts in assessing the financial impact of tomorrow’s uncertain events. They enable financial decisions to be made with more confidence by analysing the past, model-ling the future, assessing the risks involved, and

FAST FACTSProgramme: BSc (Actuarial Science) Duration: Three years Eligibility: 10+2 with Mathematics (any stream) Best Institutes for Bachelor’s: School of Architecture, Science and Technology, Yashwantrao Chavan Maharashtra Open University (YCMOU), Amity University (Dual degree course), Delhi University (Add-on course), University of Mumbai (Add-on-course) Course fee (dual degree): Amity University: 0.59 lakhs per annum; YCMOU: Rs. 1.12 Lakshs per annum Best institutes for Master’s Narsee Monjee Institute of Management Studies, University of Mumbai, Amity University, University of Madras Professional

ACTUARIES OR THE PRACTITIONERS OF ACTUARIAL SCIENCE “MAKE FINANCIAL SENSE OF THE FUTURE.”

CONTENTS1. Introduction 03

2. Why should I study Actuarial Science? 05

3. Selecting an Institute 07

4. Course Structure 09

5. Job Opportunities 11

6. International Appeal 13

7. Student Speak 14

8. Institutes Offering Actuarial Science Course in India 15

9. Institutes offering Actuarial Science Courses Abroad 16

Cover Design: Rajesh Chawla

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Editor: B Mahesh Sarma

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Research Shiphony Pavitran Suri, Prerna Singh

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communicating what the results mean in financial terms.” When hailstorms hit Germany in September 2013, The SCOR, a global reinsurance firm, in its initial estimates said the loss would be around 50 million euros. Its press release makes an interesting read; it said, “We see this cost as being within SCOR’s expectations in terms of our share of the industry loss.”

To put it in simple terms, this profession has a major role in decision-making processes within the financial service industry. The major areas of its func-tion are in social protection and in risk management for the benefit of the society. Actuaries work across the spectrum of human life. They compute the probability of various contingencies in life, such as birth, death, marriage, sickness, unemployment, accidents and retirements.

WHY SHOULD I STUDY ACTUARIAL SCIENCE?

Are numbers your best friends? Does solving probability problems fill you with enthusiasm? If the answer is in the

positive, Actuary may just be the right course for you after 10+2. If you have passed 10+2 with Mathematics, you are eligible to apply for BSc (Actuarial Science). It would be an added advantage if had you studied Economics in 10+2. To pursue a career in this field, you must pass the professional examinations prescribed by IAI. “A first year student pursuing the undergraduate degree with Mathematics as a subject may start taking up the 15-subject examination conducted by IAI to become an actuary,” shares Akanksha Jain, who works with Tower Watson, India, a top actuarial firm.

Actuarial science involves solving business problems using tools of mathematics, statistics, economics and finance. The work of an actuary is

ACTUARIAL SCIENCE SOLVES BUSINESS PROBLEMS USING TOOLS OF MATHEMATICS, STATISTICS, ECONOMICS AND FINANCE

Roles: Product analyst, Data Analyst, Actuarial Analyst, Risk analyst Top sectors Investment Banks, Insurance, Business Consultancy Salary expectation: Rs. 4-5 lakhs per annum for data analyst employed at a multinational actuarial firm.



mainly related to insurance, pensions and investment. An actuarial graduate solves financial problems by employing mathematical algorithms and statis-tical models. Such analyses help in making business decisions in sectors like insurance and investment banking.

In this highly globalized and volatile economy, the role of actuaries is inevitable. They devise ways to handle future financial contingencies. The course carries with it international appeal in terms of global job prospects at investment banks. This comes with handsome salary and opportunity to work in a global market.

On completion of the course, an undergraduate will be skilled in financial analysis and risk assessment. This help in making informed decisions on businesses based on financial calculations. These financial forecasts are based on past records and statistical methods. This information is then com-municated to decide insurance premiums, interest rates, etc.

Nowadays, immense opportunities exist for undergraduates even in spe-cialized segments such as life, general and health insurance, reinsurance companies, pension funds besides banks. There are significant job positions in government sector too. For instance, The Life Insurance Corporation of India provides actuarial apprenticeships to graduates or postgraduates with mathematics and statistics as main subjects.

SELECTING AN INSTITUTE

Yashwantrao Chavan Maharashtra Open University provides courses at under-graduate and Master’s level in actuarial

science. It offers BSc in Actuarial Science as full-time course spanning three years. An under-graduate course enables students to qualify the subjects prescribed by IAI in India. The IAI, formerly known as Actuarial Society of India (ASI) is a member of the centralized body of all global actuarial organizations called Interna-tional Actuarial Association (IAA).

Actuarial Statistics is taught as an applied course during fifth semester in BSc (Statistics) at Delhi University. Hindu College offers a short-term course as an add-on to students who have passed 10+2 with Mathematics. Likewise, Uni-versity of Mumbai introduces students to Actu-arial Science through an “Add-on Course.”

AN UNDERGRADUATE COURSE ENABLES YOU TO QUALIFY THE SUBJECTS PRESCRIBED BY IAI IN INDIA



There are several short-term courses offered by IAI, India that can be taken up alongside a full-time degree course. The detailed information can be found at IAI’s portal.

Amity School of Insurance, Banking and actuarial Sciences offers BSc + MSc - Actuarial Science (Dual Degree). During the course of five years, you will study the concepts of mathematics, statistics and investments analysis. This will help you acquire in depth knowledge of Statistics and Probabilistic Modeling for General Insurance and Casualty Actuarial Science.

COURSE STRUCTURE

The course equips you with manageri-al and financial skills to solve business problems. It is designed to give equi-

table assistance in both theoretical and practical aspects of the subject. The education and pro-fession in this field require determination and perseverance. Rajendra Shah MD, DS Actuarial Education Services, Mumbai says,“There’s no escape from hard work.”

The three-year course at School of Architec-ture, Science and technology, Yashwantrao Cha-van Maharashtra Open University starts with concepts of statistics and accounting for actuar-ies in the first semester. This evolves into major coursework in Business Economics in the fol-lowing semesters. The basics of computing such as EXCEL, MACROS with Visual Basic are studied alongside as a part of practical practice

LEARNING AND PURSUING A CAREER IN THIS FIELD REQUIRE DETERMINATION AND PERSEVERANCE.



of theory. The evaluation pattern is based on your performance in theory, practical and project work.

A degree holder of BSc (Actuarial Science) stands at par with any under-graduate degree holder with Mathematics as a core subject. “However, thorough understanding of Statistics and Economics will be beneficial for an undergraduate in clearing actuarial exams,” explains Akanksha.

JOB OPPORTUNITIES

The undergraduate degree enables you to understand the nitty-gritty of actuarial exam pattern and the professional chal-

lenges. “You may be absorbed by actuarial firms as a data analyst to learn the professional chal-lenges,” shares Akanksha.

This course opens up job opportunities in insurance, banking, stock markets and invest-ment consultancies. “To qualify as an actuary, you need to pass all the exams conducted by a professional examination body such as the IAI in India and the Institute of Actuaries, UK,” says Ritesh Mittal, e-coaching in-charge at Trump and Gates office in New Delhi. Besides this, you will also have to fulfill the prescribed criteria for work experience.

The job profiles comprise some of the most high-paying and globalized profiles in professional

THIS COURSE OPENS UP JOB OPPORTUNITIES IN INSURANCE, BANKING, STOCK MARKETS AND INVESTMENT CONSULTANCIES



domains across industries. Major recruiters are consultancy and insurance firms that hire actuaries for a pay-package in the range of Rs 8 - 40 lakhs per annum based on experience and qualification.

Prof CJ Vijayan Kanakaraj, co-ordinator at Trichy’s Bishop Heber College explains the intellectual role of actuaries, “Actuaries are experts in risk man-agement’ or they are problem- solvers with a deep understanding of financial systems.”

Postgraduate study options are available in the form of MSc Actuarial Science, Post Graduate Diploma and MBA Actuarial Science.

INTERNATIONAL APPEAL

The undergraduate degree enables you to understand the nitty-gritty of actuarial exam pattern and the professional chal-

lenges. “You may be absorbed by actuarial firms as a data analyst to learn the professional chal-lenges,” shares Akanksha.

The course is highly valued by industries over-eas. Graduates are equipped to directly take up positions in investment banks and insurance companies. There are abundant postgraduate learning opportunities abroad at recognized uni-versities. Some of these courses are offered as Distance Learning programmes that help you study around work hours. One such course is offered at University of Leicester, UK that pro-vides a “fast-track” route to specialize in this field. In line with the theme of the 2014 Interna-tional Congress of Actuaries, in this globalized profession you can ‘Learn, Interact and Grow’.

GRADUATES IN ACTUARIES CAN DIRECTLY TAKE UP POSITIONS IN INVESTMENT BANKS AND INSURANCE COMPANIES



STUDENT SPEAK

Akanksha Jain, (IAI) Graduate in Commerce (SRCC),

Working with Tower Watson India, global firm in risk and financial management.

Q. What are the pre-requisites for a course to become an actuary?A. A keen interest in Statistics and Economics is essential to pursue a course in Actuary. It is evident by the incorporation of statistics modules in the exam conducted by IAI.

Q. What are the sectors of employment and internship in India?A. The insurance sector in Indian economy is still in nascent stages and is broadly divided into Life, Non-life and Benefits (Pensions) sectors. The larg-est numbers of interns are seen learning professional skills in the benefits section of insurance. The employment based on the number of actuarial exams passed and years of qualification in Non-life sector of insurance is viewed as most challenging in the Indian markets.

Q. What is the functional role of a fresh graduate in an actuarial firm?A. The journey of becoming an actuary relies heavily on work experience. The entry-level position is generally that of a data analyst to acquaint stu-dents with the number-analysis.

Q. How does an actuarial firm support fresh graduates in their profes-sional journey to becoming an actuary?A. A reputed actuarial firm plays a significant support role in providing assis-tance to their employees aspiring actuary. It comprises granting ‘study leaves’ to prepare for the examination among other benefits. Employees are also incentivized to perform better in examinations, as the professional growth is commensurate with the number of actuarial exams passed over the years.

Actuarial Science Courses in IndiaUniversity/Institute Degree/Diploma/Certificate Website

Amity University MSc Actuarial Scienceand Applications

www.amity.edu

Annamalai University Post Graduate Diploma www.annamalaiuniversity.ac.in

Bharathidasan University Post Graduate Diploma www.bdu.ac.in

Bishop Herber College(Autonomous)

MSc and Post Graduate Diploma in Actuarial Science

www.bhc.ac.in

DS Actuarial Education Services MSc, BSc, Post Graduate Diploma in Actuarial Science

www.dsacted.com

Narsee Monjee Institute of Management Studies

MBA Actuarial Science www.nmims.edu

University of Kalyani (with LIC) Post Graduation in Actuarial Science

www.klyuniv.ac.in

University of Madras MSc in Actuarial Science www.unom.ac.in

University of Mumbai Post Graduate Diploma www.mu.ac.in

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Institutes offering Actuarial Science courses abroadDepartment University/Institute Course Country

School of Finance and Applied Statistics Australian National University (ANU) UG, PG, Certificate Australia

Department of Mathematics and Statistics Curtin University of Technology BSc Actuarial Science Australia

Faculty of Business and Economics MacQuarie University BCom Actuarial Studies Australia

Faculty of Business and Economics Katholieke Universiteit Leuven Master of Financial and Actuarial Engineering Belgium

Department of Mathematics and Statistics University of Calgary BSc, MSc Actuarial Science Canada

Department of Statistics and Actuarial Science University of the Aegean MSc Statistics and Actuarial-Financial Mathematics Greece

Department of Statistics and Actuarial Science The University of Hong Kong BSc in Actuarial Science Hong Kong

Finance and Applied Statistics/Economics ANU/National University of Singapore Joint Degree in Actuarial Studies and Economics Singapore

Nanyang Business School Nanyang Technological University Bachelor of Business Actuarial Science Singapore

Department of Insurance and Actuarial Science University of Pretoria BSc (Hons), MSc Actuarial Science South Africa

Institute of Actuarial Science University of Lausanne Master of Actuarial Science Switzerland

School of Mathematical and Computer Sciences Heriot-Watt University, Edinburgh BSc Actuarial Science UK

Imperial College Business School Imperial College, London MSc Actuarial Finance UK

Institute of Mathematics, Statistics & Actuarial Science University of Kent BSc (Hons) Actuarial Science UK

Department of Statistics, London School of Economics and Political Science

University of London BSc Actuarial Science UK

Institute and Faculty of Actuaries University of Manchester BSc Actuarial Science and Math UK

School of Mathematics University of Southampton BSc with Actuarial Sciences UK

Department of Actuarial Science Boston University MS in Actuarial Science USA

Department of Statistics/School of Continuing Education Columbia University MS in Actuarial Science USA

Department of Statistics and Actuarial Science University of Central Florida BS Actuarial Sc, MS Actuarial Science Track USA

Department of Statistics and Actuarial Science University of Iowa BS, MS Actuarial Science USA

Actuarial Science, Risk Management & Insurance Department

Wisconsin School of Business BBA, MS in Actuarial Science USA

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