| Description |
The job description of an actuary can seem elusive, intimidating, and complicated. But, once it is understood that actuaries can specialize in many different areas, the definition becomes more manageable and understandable. It is the goal of this report to provide some general know ledge of the actuarial profession. This project began with many questions. How does one get started in the actuarial profession? What education is required and what skills are necessary? What is the average salary and the potential rewards? Where do actuaries work and what are their responsibilities? Knowing the answers to these questions will enable others to decide if the actuarial profession is one to pursue. Most actuaries find employment in the insurance industry. Even within this industry an actuary's job may vary from creating mathematical models to simulate current and future claims to determining the risk of insuring the U.S. space shuttle launch. Whatever the job, actuaries are estimating the financial unknown. It is an actuary's responsibility to recommend financial investments, determine premium rates, and compensate for rising costs so that the business may remain stable and profitable. Included within this report is one possible example of a mathematical model used to determine future claim costs. The example has been simplified for clarification purposes and can be applied to different types of insurance companies. Actuaries may create their own models and therefore the methods of different businesses may vary. It is not the method which is closely scrutinized, but its accuracy. Advancement within the actuarial profession is to a certain extent self propelled. Tests to obtain higher levels of certification can be taken at the individual's own pace. Increases in pay and advancement within a company usually accompany higher levels of certification. Satisfaction within the actuarial profession is generally considered quite high. The actuarial profession was rated the second most desirable job in 1988 and 1992 by Les Krantz's The Jobs Rated Almanac. |
