Bachelor in Actuarial Science

Actuarial Science

Actuarial Science deals with estimating risks and maintaining the economic stability of insurance or financial organizations. In Actuarial studies, students learn to use mathematics, statistics, and probability concept to predict future events and take preventive measures. Actuaries analyze the previous data and use this information to determine, how much fund should be kept aside to overcome the financial losses which could happen in the future. An Actuary can help in judging if a particular business or object will be profitable or not, what could be the losses in business, when we could expect profit from the business, what could be the risk factor, and how to deal with it and so on. Study of Actuarial Science includes the study of

  • Statistics.
  • Probability.
  • Computer Science.
  • Finance.
  • Economics.
  • Business, etc.

Now how can you become an Actuary?

If you want to make your career as an actuary, first of all, you have to complete your minimum qualification which is 10+2 or equivalent with mathematics with 60% marks. Then you have to pass some Actuarial exams from a reputed institute like

  • Institute of Actuaries of India (IAI)
  • Institute & Faculty of Actuaries, Uk (IFoA) [Well recognized globally]
  • Society of Actuaries, US (SoA) and
  • Casualty Actuarial Society, US (CAS)

There are many other local institutes spread worldwide. All of the Institutes are regulated by the body International Actuarial Association (IAA).

if you want to become Actuary from IAI (Institute of Actuaries of India). Then you have to clear the ACET Entrance exam conducted by IAI. (If you pass three or more exams from other bodies like IFoA, then passing ACET is not necessary.) If you clear this exam then you can apply online to become a student member of IAI. To become an actuary, you need to pass all actuarial exams (15 of them) and have 3 years of practical work experience. These exams are divided into four stages:

Stage 1: Core Technical (All exams are compulsory)

  • Financial Mathematics
  • Finance and Financial Reporting
  • Probability and Mathematical Statistics
  • Models
  • General Insurance, Life and Health Contingencies
  • Statistical Methods
  • Business Economies
  • Financial Economies
  • Business awareness Online Module (Practical Exam)

Stage 2:Core Application (You have to clear all these exams)

  • Actuarial Risk Management
  • Model Documentation Analysis and Reporting(Practical exam)
  • Communication (Practical Exam)

Stage 3:Specialist Technical (You can choose any two subjects)

  • Health and Care
  • Life Insurance
  • Pension and Other Employee Benefits
  • Finance and Investment(A)
  • Finance and Investment (B)
  • General Insurance Reserving and Capital Modeling Specialist Technical
  • General Insurance Pricing Specialist Technical
  • Enterprise Risk Management

Stage 4:Specialist Application (You can choose any one subject)

  • Health and Care
  • Life Insurance
  • General Insurance
  • Pension and Other Employee Benefits
  • Finance
  • Investment

If you completed the first two stages then you will become the associate of IAI. And if you complete all stages then you will become a fellow member of IAI.

If you want to become an Actuary from IFoA (The Institute & Faculty of Actuaries, Uk) there is no entrance, one could start writing their exams directly. Students in India prefer to go with IFOA because the papers are comparatively easy. Though the minimum pass percentage and cost is high.

Although this is a self-study program and you have to prepare yourself for these exams, You can take coaching from an institute. Or you can complete your bachelor or post-graduation program offered by some colleges in Actuarial Science before applying for these (Actuarial ) exams. This is also a good option. By doing this you will get more knowledge in this specific field. And it will also help you in exams.

Eligibility

Eligibility to qualify the Actuarial examinations offered by IAI:

  • Candidate must pass 12th with mathematics.
  • The student must secure 50% marks in 12th (Could be different in different colleges)
  • Students who pass 10+2 with PCM/PCMB/Commerce with maths can only apply for this course.

OR

Graduate or Post Graduate in Mathematics, Statistics, Economics, Computer Science, Engineering, MBA (Finance), and other similar qualifications.

OR

Fully qualified members of professional bodies such as:

    • The Institute of Chartered Accountants of India
    • The Institute of Cost and Works Accountants of India
    • Certified Institute of Financial Analysts of India
    • Fellow of Insurance Institute of India
Different Courses in Actuarial Science

B.Sc. in Actuarial Science

M.Sc in Actuarial Science

P.G Diploma in Actuarial Science

Entrance Exams

ACET

Actuarial Common Entrance Test (ACET) conducted by the Institute of Actuaries of India (IAI). It is an entrance exam for those who want to join as student members of the Institute of Actuaries of India (IAI) and plan to take & qualify in the various actuarial examinations conducted by the IAI.

Career Options

After completing your Actuarial studies, you can acquire job in different areas, such as:

  • Life Insurance
  • General Insurance
  • Health Insurance
  • Risk Management
  • Pension Funds
  • Investments
  • Consultants
  • Government
  • Academics
Average Salary

The average package in India is 15-20 lakhs for a good Actuary. It may be higher for an experienced. The average package for fresher is 3-6 lakhs in India.

Top Colleges

Aligarh Muslim University, Aligarh
AMITY School of Insurance and Actuarial Science, Noida(ASIAS)
Bishop Herber College, Tiruchirappalli
Andhra University, Visakhapatnam
Annamalai University, Tamil Nadu
Berhampur University, Orissa
Birla Institute of Management Technology, New Delhi
Institute of Actuaries of India, Mumbai
The National Insurance Academy, Pune