What Is Actuarial Science? Studying To Be An Actuary in South Africa

What is the big fuss over Actuarial Science?

Attention all high school distinction students! If mathematics and problem solving is your passion and you would love a course that will challenge and motivate you, then a qualification in Actuarial Science is meant for you.

Now what does this degree entail exactly and what career could you pursue with it? Actuarial Science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries. It consists of a number of interrelated subjects such as probability and statistics, finance and economics.

So in short, Actuaries are professionals who qualified through examinations, assess the risk of disability, death, loss of property, cost of things, the lifespan, and financial risk of human beings.

Does that sound like something you are interested in? Excellent! Actuarial science is a field sought after in South Africa and has a great international window of opportunities. And for this reason only a few institutions offer degrees in actuarial science. These institutions are the University of Kwa-Zulu Natal, Wits University, Stellenbosch University, University of Cape Town, University of Pretoria and the University of the Free State.

Knowing where you can study this degree is one thing but to be admitted is another story of its own. Actuarial Science has one of the highest admission requirements for entry to a degree programme. You need to obtain a B aggregate in Mathematics on higher grade or a C aggregate in Mathematics on standard grade along with great achievement in a language or accounting.

The programme aims to develop a good understanding of the nature, scope and application potential of Mathematics in the financial sector. Additionally, you will also acquire the skills pertaining to the use of computers in the exact sciences.

This is a highly sought after qualification, especially in the field of insurance. Actuaries are also working in the fields of general management.

To qualify as an actuary will take about 8 years after you graduated from high school. You need to complete the undergrad degree, postgraduate degree, write the necessary examinations with the professional actuary bodies and then gain sufficient experience.

Only you know your potential and what you’re capable of. Study hard and in just a few more months you’ll start to build your future in a career that has a potential annual income close to R1 000 000 per year. Now that’s music to anyone’s ears.

Insurance Careers

Five Lucrative Insurance Careers

If you’re looking to get into the insurance field you will most likely end up carrying out one of five various undertakings to choose from. They include things like brokers/agents, underwriters, actuaries, claims adjusters, and service representatives. Each vocation contributes to the overall well-being of the agency in its own way and play important role (s) in any insurance agency.

The first insurance career attainable to potential workers is that of a broker or agent (also known as insurance producers). Key undertakings of an agent is to work directly with the customer, ensuring proper policies and presenting premium rates for the customer.

A second vocation prospect one may pursue in the insurance business is to take on the role of claims adjuster. Like brokers and agents, a claims adjuster also works directly with clients. When the state of what you’re paying to be covered for is hurt in any way, your likely to speak with the associations claims adjuster. For example, a claims adjuster at a vehicle insurance agency would deal with consumers whose cars have been in an accident by ascertaining the damage and determining the required measures to have the car reconditioned.

The third normal occupation in an insurance organization are actuaries. Actuaries have very analytical responsibilities. They are the ones who find out the rates that brokers and agents sell to consumers. In addition, some actuaries are tasked with managing the agencies excess funds, so that they can be used in the time that a claim is made.

The next career in an insurance organization are service representatives. If you’ve ever called your insurance carrier with inquisitions and/or concerns, you most likely spoke with a service representative, as they are tasked with handling individual client needs. Depending on the agency and/or their specific services, service representatives may need to get insurance licenses.

The last pursuit that we’ll talk about is the underwriter position. When an individual applies for insurance protection, the underwriter is the one who makes a decision whether the applicant qualifies for the agencies options. When agents receive applications, they send them on to the underwriter. The underwriter then evaluates the application and either authorizes it, rejects it, or requests more information from the client. In addition, underwriter’s look at current policies and decide whether the policy will continue. When claims are too high, underwriter’s typically cancel them.

With different duties comes different levels of payment. An ordinary pay range for the jobs recently explained reflects the following yearly pay scale.

Actuary: $ 50K to $ 100K

Underwriter: $ 45K to $ 50K

Claims Adjuster: $ 40K to $ 50K

Brokers/Agents: $ 30K to $ 35K

Service Representatives: $ 30K

Actuarial Jobs – Could You Be An Actuary

In order to work in an actuarial job, you must need deep analytical skills, as well as an understanding of behavior and control risk programs. Actuarial jobs in the insurance industry include many disciplines and sectors of insurance including: pension, life, property, casualty, liability, health and general insurance. Actuarial jobs for life, health and pension insurance deal with the risk of death, medical services risks and investment risks.

Actuarial jobs for general insurance are known as casualty actuaries and deal with non-life risks that occur to property and people. They commonly work with companies specializing in auto insurance, home insurance, commercial insurance, malpractice, product insurance and other types of liability insurance.

Insurance is required in nearly every aspect of our lives, and big insurance companies have to calculate the risks associated with each insurance policy in order to properly bill for the service. This risk assessment, done by an actuary, is what helps the insurance companies decide whether the risk of the particular policy is worth it and how much to charge for the policy in order to minimize financial loss of the company.

Actuaries specialize in probability and statistics, and use the foundations of mathematics, finance, business and economics to determine risk of events and to create policies that minimize the financial loss of the risk.

In the UK, actuarial jobs are common, especially in the Government Actuary’s Department to analyze data and statistics to estimate the likelihood of events and their impact on the country and residents. The actuaries also design pension plans and financial strategies for the government to maintain finances and stability in the country.

The general employment of actuaries in both life and casualty is to determine premiums and reserves for insurance policies that cover a wide variety of risks. The premiums (payments made by the policy holder to the insurance company) are based on the amount of money the insurance company needs to collect in the event of expected loss and expenses (such as vehicle replacement due to collision). In the life end of actuarial jobs, the actuary does the same job but analyzes the frequency of loss and size of loss in severity.

In the UK, actuaries must qualify for the job though a series of courses and exams provided by the Institute of Actuaries and the Faculty of Actuaries–which are separate bodies but coincide with each other, although training schemes run by employers to exist. The exams are taken after joining the body although if courses are taken at university, some of the courses and exams may be exempted. It is required that a candidate of these bodies have three years of experience in actuarial work under the supervision of a recognized actuary in order to be eligible as a “Fellow of the Institute/Faculty of Actuaries.