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1. What is the pre-requisite to become an actuary? Any specific subject knowledge required for doing the course?

The basic requirement is 10+2 pass. All you need is to be good at logic and problem solving, excellent business awareness and good communication skills. 

2. Why should I consider the actuarial profession?

A career as an actuary gives you the chance to apply your skills in maths and statistics to real world challenges. In an increasingly global economy, the ability to decipher and interpret complex statistical and financial information will be ever more crucial.

  • Rewards : Actuaries are amongst the best paid of all professional groups with starting salaries that far outstrip your peers in other industries. It’s a challenging and rewarding role for thought leaders and innovators. The actuarial profession attracts some of the brightest, most ambitious and creative people you could ever meet. It’s why the actuarial profession is so highly regarded and respected. In fact, currently, industry feels there is 20-25% shortfall with only 382 qualified actuaries working in India.
  • Earn while you learn : Yes, you can earn while you study this course. After clearing few actuarial papers, you will get a good job as actuarial trainee.
  • Variety of work : If you want to learn something new every day, this course is meant for you. Actuaries work in a variety of domains such as insurance, pensions, compensation, investment banks and banking.
  • Powerful role : They make a difference. They play a crucial role in business decisions. To be more specific, they help organizations to improve financial decision making by developing models to evaluate the economic, financial and other business applications of uncertain future events.
  • Job satisfaction : Actuaries describe their work as challenging and interesting. They are in high demand all over the world with high job satisfaction not only in terms of working environment but also in monetary terms.
3. How long does it take to become an Actuary?

There is no fixed time for becoming a qualified Actuary but depending on the efforts put in, one may get through the examinations in 4 to 6 years on an average. IAI encourages students to acquire the qualification in minimum possible years.

4. Do I need to work before I qualify?

In order to qualify, there is a minimum work experience requirement of three years in an Actuarial field.

5. What is the average pay scale for Actuaries in India?

Actuaries are globally in demand and can command hefty pay packets, salaries and perks. Actuarial students can expect to start their career with an annual package of anywhere between Rs.4 to 5 lakh. A newly qualified actuary today does not earn less than Rs. 15 to 20 lakhs. The salary of experienced actuaries is much more.

Insurance companies and consulting firms give merit to experience and qualifications with salary packets ranging from 8 lacs per annum for beginners to around 40 lacs per annum for those in senior positions.

6. Do Actuaries or Actuarial students get support from their employers?

Most of the employers support their employees pursuing Actuarial studies and encourage them in passing the examinations.

7. What are the opportunities/work areas for actuary in Insurance sector?

In Insurance Sector, traditionally, the Indian Actuaries and other classes of Actuarial Professionals have worked in the past and are currently working at national and international level in all the work areas of an Insurance Company. However the following are the primary areas where they have unparalleled advantage :

  • Risk Management
  • Product design and Pricing
  • Managing Policyholders reasonable expectations be it benefits/ bonus distribution, etc.
  • Policy Illustration
  • Managing Investments/ Asset Liability Management
  • Actuarial Models, Predictive/Stochastic modelling
  • Information Technology
  • New Initiatives
  • Compliance
  • Advice to other departments, for e.g. Policy servicing/HR (efficiency/employee benefit)/IT, etc.
  • Valuation of Liabilities
  • Solvency Maintenance
  • Analysing the business parameters/experience e.g. persistency, claims, etc. and their reporting (Big Data Analysis)
  • Shareholders’ reporting
  • Regulatory Reporting
  • Insurance Education and Training
  • Reinsurance treaty maintenance
  • Underwriting ETC
8. Does IAI qualification has recognition and acceptance at an international level?

IAI has mutual recognition arrangements with the Institute and Faculty of Actuaries, UK, and Institute of Actuaries of Australia, which means as a Fellow actuary of IAI, you will be recognized as a qualified actuary in the UK and Australia, as well, subject to meeting certain requirements. IAI is also working to obtain similar recognition arrangements with other actuarial societies around the world.

9. Which are the top actuarial employers in India?

Some of the top companies hiring actuaries are :

  • AXA
  • RSA
  • Willis Towers Watson
  • Reliance Nippon Life Insurance
  • KPAC : KP Actuaries and Consultants
  • PwC
  • EY
  • AIG
  • MetLife
  • Mercer
10. What is the difference between working in a consultancy or in a non-consultancy role?
Having decided on a career as an actuary you ought to contrast and compare the opportunities offered by various types of employers such as life, general insurance, pensions companies, financial firms as well as consultancy firms. These opportunities offer different lifestyles and challenges. Working in a non-consultancy role means that there is usually only one client - your employer. Varied work can also be available in these roles, but it tends to come more slowly - often you'll be asked to work in one area for a period of about a year before moving on to the next challenge. Work in consultancy firms tends to be more varied, as in any year you are likely to work for a number of different clients (and partners) solving different types of problems. This can become particularly challenging if you have a number of projects running in parallel and you need to ensure that you meet each of your clients' expectations and deadlines. Some consultancy projects can involve working at the client's site, which may not be in the same town as your office. This can give you an excellent opportunity to work with other people and see the running of an organisation other than your own consultancy.
11. Will I need to continue training once I have qualified?

Yes, actuaries are required to maintain their competence once qualified through continuing professional development.

 

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