Actuarial Science is one of the best degree courses to study in the world. Many of the students or people who want to join university don’t know exactly the duties of an actuary.
Actuaries work for insurance companies, stock brokers, actuarial firms, audit firms as well as research institutions. They are tasked with modeling scenarios as well as making financial projections.
Below we provide all duties actuarial science professionals should perform in their day to day activities.
- Ensure availability of accurate and timely data on assigned tasks as required including using available knowledge sources optimally;
- Carry out data checks, clean up and analysis;
- Conduct actuarial analysis including mortality investigations, expense analysis, investments analysis and business analysis;
- Participate in the development and documentation of actuarial models;
- Report writing;
- Ensure assigned work is completed within agreed time frames and carried out per approved methodologies and standards and within agreed budgets;
- Assist in developing recommendations for corrective action/improvement;
- Develop statistical models
- Actuarial Valuations:Calculate the technical reserves for the assigned line of business, using appropriate actuarial methodology, for published financial reporting, regulatory accounts and other purposes such as determination of appraisal/embedded value.
- Product design, pricing & Set up: Determine technical premiums for new and repackaged products and new premiums for existing products based on experience reviews. Also set up product in administration and valuation systems.
- Experience Reviews: Review and monitor experience on products to inform decision making, including profit testing of existing products and analysis of embedded value for life business. Also perform experience reviews to inform assumptions used in product pricing and actuarial valuations. These reviews include but not limited to; expense analysis, investment return, lapse and mortality and loss ratio performance.
- Capital Management: Determine capital required to support the business under the Economic Capital/Capital Adequacy Framework and the solvency capital required under the current and Risk Based Capital regimes.
- Regulatory Compliance: Assist in preparation of reports required by the regulator from the Actuarial Function. These include the reports on valuation of technical liabilities and solvency required on a quarterly basis and the Financial Condition report that is required on an annual basis.
- Business Planning and Projections: Carry out projections for annual business planning, new lines of business and distribution channels including assessment of future capital requirements.
- Business Analysis: co-ordinate high-level business analysis on sales, markets and other general macro-economic issues when required by the business.
- Management Reporting: Provide comprehensive actuarial reports to the business on a quarterly basis and highlight key issues on an on-going basis.
- Risk Management Support: Assist in implementation of Risk Appetite Framework through quantification of identified risks, risk limits and risk mitigation initiatives.
An actuary can perform any of the above roles.