Actuarial Work

Actuaries use mathematical and statistical models to predict and manage risks in financial investments.

OVERVIEW

Actuaries build and use mathematical models based on statistical data to predict the potential risks of a financial investment, as well as how to offset those risks on behalf of the investing company.

As an actuary, your work revolves around the prediction, evaluation, and management of risks using a combination of statistical/ mathematical models and commercial awareness. You may also be asked to advise clients and stakeholders about your findings, and to help develop possible solutions.

This type of work involves analysing data from the past and present to measure the probability of future events. Actuaries are involved in all types of business areas including planning insurance premiums and calculating pension plans.

STARTING OUT

The most efficient pathway into this line of work is to complete an actuarial science degree. This degree will allow you to enter the workforce, however, you will not be considered a certified actuary at this stage.

In order to achieve professional status as an actuary, you will need to further your actuarial studies by taking professional exams from certified bodies. The professional exams may take another three to seven years (part-time) to complete. According the to Actuarial Society of Malaysia, the most common certifying bodies locally are:

Actuaries Institute (Australia)

Canadian Institute of Actuaries

Casualty Actuarial Society (US) Make sure to check each institution’s list of accepted universities to ensure you’re getting your credits from a valid institution.

If you don’t have an actuarial science degree, you can still get certified as an actuary! A number of certified actuaries come from degree programmes like mathematics, statistics, or economics.

Furthermore, some employers may offer trainee actuaries financial assistance and ample study leave to lighten the load of attaining actuarial certifications.

CAREER PATHWAYS

Graduates typically start their careers as trainees, assisting senior actuaries in their duties as they pick up the necessary skills (and professional hours) required to advance. At this stage, you will likely spend of your time working with pre-constructed models to generate financial forecasts and risk assessments.

As you gain more professional experience, you may be assigned greater responsibilities such as leading projects, constructing, updating and analysing financial and forecasting models; or handling client relationships. After gaining certification from an actuarial body, most actuaries tend to specialise in a specific area of interest, gaining in-depth knowledge, experience, and reputation as an expert in their field of choice.

There are many actuaries who have found also opportunities in other seemingly unrelated areas of management as well. For instance, actuaries have been known to venture into infrastructure and climate change projects, as well as the healthcare and cybersecurity.

REQUIRED SKILLS

Aside from possessing a high level of numeracy, you need to be good at critical thinking and problemsolving. Excellent communication, interpersonal and presentation skills are also important as you will be required to present data findings and potential solutions to your clients.

Actuaries should also be flexible and adaptable as the job scope can be very diverse, with ad-hoc tasks and projects interrupting your day regularly. Accountability is equally important as it’s crucial that you diligently follow up with stakeholders throughout the process of implementing a risk management solution.