Actuarial Sciences (A brief Introduction)zz

“An actuary is a professional person who applies a mathematical mind to long-term financial problems, especially those which
involve risks and probabilities”.

To assess risk in the insurance and finance industries through mathematical & statistical methods is known as Actuarial Sciences. A professional actuarial is one who has knowledge, education and experience in this field. An ever growing field where the use of mathematics rules and statistical values for the valuation of different things and be an important person in the business. It’s not easy to be an actuarial as one has to go through a series of exams for such degree.

The work of the actuaries is intellectually challenging, tough and they are very well-paid. They play an important role in the management team where they work as the valuation of risk assessment is much more important for the company than anything else. As today’s world is changing at great pace and opportunities in this new world is increasing with new resources. In this newly developed world, the different hidden risk of the business are affecting too much on businesses and to reduce such risk to lower level is much more important than to overcome such risk. The actuaries are the main persons to reduce the risks of business. One can’t overcome the risk as whatever the policies and procedures are done, still one is unable to overcome the risk that affects the business in different ways. Risk is the potential that a chosen action or activity will lead to a susceptive loss that will lead towards loss instead of profit in a business. These potential losses are called Risk to any business. One can reduce the risk to lower level but can’t overcome the risk to zero level.

First thing to know is that from where such actuary’s profession starts and how it blooms to the highest level. Life insurance businesses were considered to be the founders of the actuaries where the first insurance business with name “Old Equities” of Britain in 1762 and they are working successfully as well. This shows that the Actuaries profession is more than 200 years old. Still life insurance has an important business in the worldwide and actuaries plays important roles in such business.

Actuaries are not only for Life Insurance Businesses, they may be used in other businesses too. Actuaries are responsible for design of policies, the calculation of premiums, payments to employees in their pension benefits, valuation of certain items to be used in business, periodical actuarial valuation, bonuses and dividend recommendations for the company in any year, the investment policy of the company and all other financial aspects of the company.

In PAKISTAN this field emerge with great enthusiasm and other than State Life Insurance Corporation of Pakistan, other companies and Government sectors are also using the expertise of such actuarial. This has increased the demand for actuarial expertise.

The Fields Where Actuarial science was USED:

The main fields and companies where the work of actuarial are of much important and plays important roles are given below:

1.  Pensions, gratuities and retirement benefits
2.  Social Insurance
3.  Employee medical plans
4.  Financial Plans
5.  Risk Assessments
6.  Work completion
7. Provident funds contribution
8. Funds calculations and advances
9. Benefits plans the year and future years
10. Leasing schedules

Institutes for Actuaries in Pakistan:

Pakistan Society of Actuaries plays an important role in promoting this field to great extent. This society consists of Pakistani Actuaries, being Fellows and Associates of the Institute, and the persons who are members but live outside Pakistan, and the students studying in Pakistan for the examination of these bodies. They prepare high quality exams so that the quality turns to be the main priority of this society

University of Punjab (Department of Statistics)

Karachi University   (Department of Statistics and Actuaries)

These two universities are the main where the quality educations were provided and students and fellow member of these universities were considered to be the best in this field and in market as well.

Who should be a Best Actuaries?

Actuaries are the one who uses the Mathematical, Statistical data and Probability to value certain things and financial plans and risks of the agreements. So if someone good in Mathematics and statistics can be a best actuaries but other people can also turns to be the best by proper training and examination. Some of the main qualities that should be important for the best actuarial are:

1. Excellent in Mathematics
2. Proficient in English Language in reading, listening and speaking
3. Enquiring mind
4. Decision makers
5. Solve complicated problems
6. Knowledge about day to day happening in the world
7. Self-motivated achiever

Other data about this field will be updated soon.

Author Profile: Jaber Swati

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