Do you have a knack for math? Do you want to work in the fields of statistics, data, or mathematics? If yes, becoming an actuary could be a great career choice for you.
Actuaries are among the most well-respected financial professionals in the world. They aid businesses in assessing risks and making better-informed decisions. In this article, we will explore actuary as a career option, the scope of actuarial science in India, jobs in actuarial science, top recruiters of actuaries, and salaries of actuaries in India.
Actuarial science
Actuary assesses financial risks in various fields such as insurance and banking. The study of actuarial science entails training students on non-quantitative and quantitative analyses in business to assess the risk of an event occurring. Risk management, mathematics, statistics, probability theory, finance, computer science, and economics are all part of the actuarial science curriculum today. Actuaries were first introduced in the year 2002, after which they became one of the growing career opportunities.
Roles & responsibilities of Actuary
The role of an actuary involves understanding financial risks using mathematics and statistics primarily in the insurance and banking industries. Following are the various roles and responsibilities of the actuary in an organisation:
- They are in charge of assessing data from previous and current events to forecast the likelihood of future events. They must assess the possibility of various events and devise strategies to mitigate the risk to which their company is exposed.
- Actuaries must assess many risks that their firm faces to assist them in making better decisions. They employ their talents in financial modeling and predictive analysis to estimate the financial costs of certain scenarios.
- Most actuaries work for insurance firms, assisting them in determining the risks of a specific plan. Corporate finance, investment management, healthcare, and banking are other fields where they work.
- They analyse enormous volumes of data linked to market trends, supply chains, and costs by using mathematical and statistical methods. Actuaries work in insurance firms to strike a balance between the financial risk of the policies and the risk of issuing policies.
- They also analyse the impact of many elements on an insurance policy, such as event data, using various data models, and then alter the terms and pricing of the policies accordingly.
- They perform critical roles in a variety of industries. Actuaries are a significant part of a company’s planning process and strategic decision-making.
Scope of actuaries In India
Actuarial Science is an ever-growing sector, which has become extremely crucial in times when data is ruling the world. In India, there is a three-fold increase in demand for skilled actuarial science specialists compared to supply. One of the reasons for such a disparity between supply and demand is a lack of knowledge about the possibilities of a career among students.
Actuary as a career opportunity has a huge scope in India. Among India’s 1.3 billion population, there are just 9,000 actuaries, even though it is one of the highest-paying professions. With the rising number of insurance and related companies, careers in actuarial science have also increased. Actuaries are now required in banking, insurance, manufacturing, financial services, consultancies, and stock exchanges, both in the private and government sectors.
Actuary Salary in India
In India, the average salary of an actuary is INR 11 lakh per year. Pay in this sector ranges from INR 3 lakh to INR 43 lakh per year, depending on a candidate’s education, experience, and talents. The annual cash compensation for this position ranges from INR 1.1 lakh to INR 2.7 lakh. It is without a doubt one of the most rewarding occupations available to math and statistics lovers.
Companies rely on actuaries to evaluate risks and get insights to make better decisions, making them one of the sought-after professions. Every company seeks actuarial professionals to assist them in making better business decisions. It is high-paying employment, particularly in India, where demand exceeds supply.
Factors affecting actuary salaries in India
Several things influence the salary of an actuary in India. One must be aware of the effects of these factors to figure out how much money one can expect from the actuary career accordingly. Understanding the impact of these characteristics can also assist you in determining how to enhance your salary efficiently. The following are the most significant factors that influence the salary of an actuary in India:
- Education: Actuary is a professional career that requires you to complete specific courses and certifications from approved educational institutions. The qualification level determines the level, type, and scope of the job. A person who has completed professional certifications with flying colours can get a good salary package.
- Skills: Actuarial science is a highly specialised field that necessitates mastery of various statistical, mathematical, and data science topics. As a result, your actuary salary in India is heavily influenced by your skillsets. Some skills, such as risk management, are must-haves for actuary jobs. Meanwhile, other skills like financial modeling may not be necessary but can help you advance in your career and get a better actuarial salary.
- Experience: The amount of experience you have as a professional is perhaps the most influencing factor for your actuary salary in India. The more experienced you are in this field, the higher the salary you will get. Research says that entry-level actuaries earn around 35 percent less than the industry average. Mid-career actuaries, on the other hand, earn 38 percent more than the average, while more experienced actuaries earn around 192 percent more.
Conclusion
For many people, the actuary is a dream job. While everyone wants to be an actuary, not everyone knows how to make the most money in this area. Working as an actuary can also help you acquire a career at McKinsey, IDBI, HDFC, Prudential Life, PwC, E&Y, Max Life, and other companies. So begin studying for actuarial exams and pursue a career in this ever-expanding field.
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