What is the job description and role of an Actuary? What are the duties and responsibilities of an Actuary?
Actuary Job Description
Actuaries evaluate, manage and advise on financial risks. They apply their knowledge of business and economics, together with their understanding of probability theory, statistics and investment theory, to provide strategic, commercial and financial advice. The core of actuarial work lies within pensions and insurance, where professionals are most likely to start off. Some actuaries may move on to investment banks at a later stage.
Actuarial work can be diverse and ranges from highly technical roles developing complex financial products in investment banks or pensions and insurance companies to consultancy roles for those seeking a client-facing career.
Actuaries need to apply their mathematical, economic and statistical awareness to real situations in the financial world and be able to communicate the difficult topics to non-specialists. Strong communication skills are becoming an increasingly important part of the actuarial profession, and it is essential that actuaries are able to discuss complex topics in a simple way to assist their clients effectively.
Actuarial trainees may begin work as trainee pensions consultants or risk analysts while at the same time studying for professional exams. Senior actuaries can be found in consulting firms as partners, in large banks as chief risk officers or in board-level positions in insurance companies and other financial services organisations.
Job Description / Duties / Functions / Roles / Responsibilities of an Actuary
- Actuary advises on issues such as the selection of investment managers or the administration of pensions and benefits;
- Actuary work with IT professionals to develop systems to ensure compliance with the requirements of regulatory bodies;
- analysing statistical data in order to calculate, for example, accident rates for particular groups of people;
- communicating with clients and carrying out relationship management, including with investment managers, financial directors and external stakeholders;
- supervising staff;
- using mathematical modelling techniques and statistical concepts to determine probability and assess risks, such as analysing pension scheme liabilities, to price commercial insurance;
- calculating funding rates and considering assumptions for pension scheme liabilities;
- developing new financial products;
- Actuary monitor risk within trading positions in investment banking to ensure excessive risks are not taken during the fast pace of trading;
- Actuary work with mergers and acquisitions on some occasions.
- conducting valuations of assets and liabilities;
- analysing risks related to locations for catastrophe claims;
- measuring, monitoring and mitigating portfolio and enterprise risks;
- presenting reports, explaining their implications to managers and directors, and advising on risk limitation;
- Actuary oversees asset and liability modelling, product development and profit testing;
- preparing presentations, reports, valuations and quarterly updates.
- advising on investment strategies and assessing the profitability of an investments portfolio;
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