Actuary Job Description
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Common questions people ask include:
What is the job description of an Actuary? What are the duties and responsibilities of an Actuary? What does an Actuary do?
Job Description of an Actuary
An Actuary uses mathematics, computer science, and statistics to assess the risks associated with certain events and helps companies plan for or reduce the financial repercussions should these events occur. 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.
Actuary Duties and Responsibilities
Actuaries perform a variety of functions and roles including:
- 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;
- Analyzing 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;
- Analyzing 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;
Actuary Requirements / Skills / Qualifications
Some common skills and qualifications required of Actuaries include:
- Bachelor’s degree in Actuarial Science, Mathematics, or a related field.
- Experience may be preferred or required.
- Additional certifications and training may be required.
- Extensive knowledge of mathematics, statistics, computer science, and calculus.
- Familiarity with specific industries, such as finance or insurance, may be beneficial.
- Strong communication and presentation skills.
- Proficiency with computer software and modelling programs.
As a hiring manager, recruiting an ideal Actuary starts with crafting a good job description. Use this Actuary job description template to save yourself time and help you attract the most qualified candidates. Feel free to revise it to meet your specific needs. Job seekers interviewing for the role of an Actuary may also reference it in preparation for the interview.
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