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Actuaries are skilled and qualified experts in the field of Economics, Statistics and Mathematics. Actuaries help in Risk Assessment and Estimation of premiums for any sort of insurance business. Actuaries are in charge of Reviewing Company Policies, Working on Statistical Data, and Developing New Risk Analysis Methods. As per GlobalData forecasts, the CAGR for the general insurance sector will reach 6.2% between 2019 –2023.
Aspirants from a science or commerce background with Mathematics/Statistics as the core subject can pursue undergraduate and postgraduate Actuarial Science Courses such as BSc in Actuarial Science, a PG diploma in Actuarial Science and can even pursue MSc in Actuarial Science or MBA in Actuarial Science in order to become an Actuary in India. India is home to a number of top Actuarial Science Colleges across the country, some of them are, Christ University, Kerala University, Chandigarh University etc. Admissions to these colleges are done both on the basis of merit as well as on the basis of Entrance Exams.
An aspirant can engage himself in investment firms, hospitals, large corporations, government departments and consulting firms, after pursuing a degree in any of the actuarial courses for which they can get an annual compensation of around INR 3.59 – 5.50 LPA. The highest salary of Actuary after gaining substantial years of experience can earn as much as INR 43.20 LPA. Read More: Salary of an Actuary
- How to Become an Actuary: Quick Facts
- Who is an Actuary
- Types of Actuaries
- How to Become an Actuary in India
4.1 How to Become an Actuary After 12th
5.1 Entrance Exams
- How to Become an Actuary Abroad
- Benefits of a Career as an Actuary
- Skills Required to become an Actuary
- Salary of an Actuary in India
9.2 Experience Wise
How to Become an Actuary: Quick Facts
| Industry | Finance and Insurance |
| Eligibility | 12th in Science/ Commerce with Mathematics/ Statistics or UG in BSc. Actuarial Science |
| Average Salary | INR 3.59 LPA – 5 LPA |
| Job Opportunity | ICICI Lombard General Insurance company ltd., Mercer, Aon, Willis Towers Watson, Milliman |
Who is an Actuary
Actuaries analyze and assess financial risks in a business or organization. They help organizations plan for the future and help insulate them from their financial losses. This is different from the job role of an accountant, which only focuses on financial records of the past.
The job roles and responsibilities of an actuary include:
- Analyzing the possibility of future financial profit/losses by using data.
- Designing methods to decrease the possibility of negative financial effects from an undesirable event such as loss.
- Providing the methods or ways for profit in certain situations for businesses.
Types of Actuaries
There are 12 types of actuary job profiles candidates can choose to start their career after pursuing a degree in actuary. Among these 12 types of actuary job roles, graduates can choose to become Senior Executive Actuarial, Actuarial Product Manager, Actuarial Associate, Consultant, Analyst, Financial Adviser, etc.
- Life Insurance Actuary: Actuary in the Life Insurance sector is one of the highest paying jobs after the actuary course. They have to work in insurance and reinsurance companies to minimize the risk of insurance and have to generate a stable return after investing in insurance.
- Pricing Actuary: They also work for insurance, corporate etc. companies to determine a price for a product. For keeping a price for a product, they have to analyze the financial data and risks of a product.
- Investment Actuary: Actuary career in an investment sector is related to strategy development, investment management, risk management etc. In an investment bank, the role of an Investment Actuary is to give advice to the company on how to manage the investments in that company.
- Corporate Actuary: Corporate Actuary focuses on maintaining and updating company standards. They have to do an analysis of results, feedback and product pricing process.
- Property and Casualty Actuary: This is the most common type of actuary job. They generally work for insurance companies to help them in developing insurance policies. These policies are developed to ensure against property loss, or any other loss resulting from natural or any other accidents.
- Forensic Actuar: Forensic actuaries are responsible for providing litigation support in the matter of insurance and reinsurance.
How to Become an Actuary in India
Becoming an Actuary in India is not so easy, students need to pass all the required exams of Actuary to become an Actuary. The course is about using statistical and mathematical techniques in order to deal with problems in insurance, banking or other financial sectors.
- School Level Preparation: Aspirants need to prepare for actuarial courses just after passing 10th. If you are interested in learning Actuary, you have to choose your subject according to get admission in this course. Hence, you should take Science with Physics, Chemistry, Mathematics or Commerce with Mathematics/ Statistics
How to Become an Actuary After Class 12th
Some of the key steps that should be followed to become an Actuary after clearing Class 12th boards are listed below for your reference,- Under-Graduate Level Preparation: For a Bachelor's degree, you can take BSc in Actuarial Science or a Diploma in actuarial science. Many colleges such as Christ University offer BSc in actuarial science. To be eligible for UG-level actuarial courses, aspiring students can take PCM with statistics in class 12. Aspirant needs to take the Actuarial Common Entrance Test, conducted by IAI to get admission to colleges offering actuarial courses.
- Post-Graduate Level Preparation: After completing Underan -graduate degree, a candidate can go for further studies in the Actuary field. Aspirants can pursue MSc in Actuarial Science or even MBA in actuarial science. The eligibility criteria for pg level courses in actuarial science is having a bachelor's degree in actuarial science or any other related fields from a recognized university. Post fulfilment of the eligibility criteria, aspirants have to appear for an actuarial entrance test or management entrance exams in the case of MBA in actuarial science.
Actuarial Science Courses
Some of the top courses to become an Actuary with all the relevant information are tabulated below for your reference.
| Parameters | B.Sc in Actuarial Science | M.Sc in Actuarial Science | MBA in Actuarial Science |
|---|---|---|---|
| Duration | 3 years | 2 years | 2 years |
| Eligibility | Candidates must have completed class 12th with a minimum aggregate of 50% or above from a recognized board Candidates must have completed class 12th in the science stream with physics, chemistry and mathematics. |
Candidates must have completed an undergraduate degree with a minimum aggregate of 50% or above from a recognized institute Candidates must have completed graduation with B.Sc or B.Com with mathematics and statistics as main subjects. |
Candidates must have completed an undergraduate degree with a minimum aggregate of 55% or above from a recognized institute Candidates must have completed graduation in Mathematical science, computer science, Physics or Commerce |
| Top Colleges | Bishop Heber College Amity University Parul University Woxsen University |
Christ University Amity University University of Madras Kerala University |
DAES College, Mumbai Bishop Heber College Department of Statistics, Mumbai University |
| Entrance Exams | CUSAT | CUET Actuarial Science Entrance Exam |
CAT XAT MAT IBSAT |
| Average course fees | INR 15,000 - 2,50,000 | INR 20,000 – 4,00,000 | INR 80,000 - 4,50,000 |
| Average Salary | INR 4,00,000 - 7,00,000 | INR 5,00,000 – 10,00,000 | INR 5,00,000- 10,00,000 |
Entrance Exams
Listed below are few of the entrance exams that must be cleared to get admission across top colleges and universities offering Actuarial Science courses.
| Entrance Exams | Registration Dates | Registration Deadlines | Exam Dates | Result Dates |
|---|---|---|---|---|
| CAT | 1st week of August 2023 | 3rd week of September 2023 | November 26, 2023 | 1st week of January 2023 |
| XAT | August 10, 2022 | November 23, 2022 | January 8, 2023 | 4th week of January, 2023 |
| ACET | September 3, 2022 | February 17, 2023 | March 18, 2023 | March 28, 2023 |
How to become an Actuary Abroad
Candidates also have a choice to become an Actuary abroad. Some of the top countries where demand for an actuary is high as compared to India are the United Kingdom, the United States of America, Canada, Australia etc. For becoming an Actuary abroad, candidates are required to fulfil certain eligibility criteria which might vary from country to country.
Discussed below are some of the important eligibility criteria to become an Actuary abroad are,
- Candidates must have completed 10+2 from a recognized board with a minimum aggregate of 50% or above in the science stream with physics, chemistry and mathematics.
- Candidates must complete a bachelor's degree from abroad
- Candidates will be firstly required to clear IELTS or TOEFL with a minimum of 6.5 and 110 scores respectively.
- Post that, candidates will be required to clear some more exams in the US, candidates need to clear exams by the Society of Actuaries, American Society of Pension Professionals and Actuaries etc.
- Candidates also need to submit their Statement of Purpose and reference letters from the last institute attended.
- Candidates also need to submit proof of their finance.
Benefits of Becoming an Actuary
Every profession has some benefits that make it a preferred career choice among candidates. Some of the benefits of becoming an Actuary are discussed below,
- Diverse set of responsibilities- Actuaries are responsible to perform multiple sets of duties to grow in their career path. They perform several roles such as mathematicians, financial analysts, business professionals etc. This profession allows one to develop unique skills and apply those skills in multiple situations to analyze risk factors and develop a solution to them.
- Ability to specialize - The profession of Actuary offers various specializations for the candidates to explore both in terms of education and profession. Actuaries can find their specialization in life insurance, predictive analysis and retirement funds. It depends upon the candidates whether they want to specialize to just stick to one area of expertise. Some of the other specializations for actuaries include employee benefits, disability, corporate, pensions, product development, property, marketing etc.
- Opportunities for career advancement - After gaining years of experience, candidates might look for opportunities to advance their careers. There are several roles which they can pursue such as actuarial specialists or actuarial service directors. They can also pursue careers as an educator of finance, financial consultation etc.
- High projections of job growth- The profession of Actuary is in huge demand at the present but the demand is expected to grow more in future. According to IBEF, the employment of actuaries may grow by 24% by 2030. The growth rate is very much high compared to other professions.
- Competitive Salary - The average salary of an Actuary is INR 10.11 LPA. But there are several factors on which the salary is dependent such as academics, experience, skills, company profile, location etc. Fresh graduates can expect a starting salary of INR 3.5 LPA which can go up to INR 50 LPA. Actuaries are also entitled to bonuses and profits.
Skills Required to Become an Actuary
Since Actuary is a highly specialized field, candidates are required to have advanced knowledge of mathematical, statistical and data science concepts. These advanced knowledge and skills make a huge impact on the salary of an Actuary. Some of the most essential skill sets that are required to become an Actuary in India are tabulated below for your reference.
| Advanced knowledge of math and statistics | Valuation | Strong Computer Skills |
| Data Analysis | Advanced knowledge of Microsoft excel | Insurance |
| Statistical Analysis | Financial Modeling | Pricing |
Salary of an Actuary in India
The salary of an Actuary varies in different job profiles and also in different job sectors.
Average Annual Salary
| Name of organization | Average Annual Salary |
|---|---|
| Government | INR 5.13 L |
| Private | INR 10.17 L |
Specialization Wise Salary
| Specializations | Average Annual Salary |
|---|---|
| Actuarial Product Manager | INR 11.50 L |
| Financial Adviser | INR 6.30 L |
| Consultant | INR 9.40 L |
| Senior Executive Actuarial | INR 13.30 L |
| Analyst | INR 13 L |
| Actuarial Associate | INR 6.28 L |
Experience Wise Salary
| Experience | Average Annual Salary |
|---|---|
| Fresher | INR 4 L |
| Experienced | INR 17 L |
How to Become an Actuary: FAQs
Ques. Is it worth learning Actuary?
Ans. Yes. There is a high demand of employees in Actuary profession
Ques. Is it easy to get a job in Actuary profession?
Ans. Yes. But the work environment is very challenging. You have to be an expert in this field if you want to continue your career as an Actuary.
Ques. Are the Actuary examinations tougher than MBA entrance?
Ans. Both are difficult exams. But the actuary exam is tougher than MBA entrance exams.
Ques. How many exams do we have to take to become an actuary in India?
Ans. There are 15 actuary exams. And to become an Actuary in India you must have to pass all the 15 actuary exams.
Ques. Can I pursue an Actuary course under MBA degree?
Ans. Yes. You can pursue MBA in Actuarial Science. For that you have a clear Management Entrance Exam.
Ques. What is the eligibility to become an Actuary?
Ans. To become an Actuary you have to study commerce in Mathematics or Statistics or science in PCM. And then you have to pursue a bachelor degree in commerce or science in mathematics or statistics or actuarial science. After pursuing a bachelor degree in computer engineering, you can study this course.
Ques. How much do we need to spend to study an Actuary course in India?
Ans. The course cost is 20,000 to 3,00,000 in India. It varies from institute to institute.
Ques. What is the average salary of an Actuary in India?
Ans. Average salary of an Actuary in India is INR 7 to 15 lakh per annum.
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