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Actuaries and Their Functions

5/10/2012 2:04:25 PM | by Anonymous

Actuaries

Actuaries are business professionals whose job is to deal with long term impacts of financial uncertainty and risk. A good actuary is able to perform intensive analysis of financial situations and possess business skills in order to be able to predict future financial issues. Some people even refer to them as financial architects or social mathematicians because of these unique skills.

How is an actuary able to predict future business and financial situations? They evaluate current procedures implemented in finance and the uncertainty of future events by developing models. They can evaluate the likelihood of events and put the outcome in mathematical numbers so as to minimize losses, be it emotional or financial. They have great problem solving skills that they apply to many different social and business situations. Although the population of actuaries is not big, they influence people’s lives and business situations greatly. The calculations that actuaries make are the backbone of financial security and insurance industries. Despite the fact that their work involves a lot of numbers, actuaries also have to be up-to-date in world issues such as business, law, social science and economics. This knowledge aids in their ability in problem solving. Also, they should be able to communicate well so that they can convey their understandings to people who are not actuaries and may not perceive what they are able to see.

Being an actuary had been ranked as the best job in the world before by The Wall Street Journal. Actuaries can work for a variety of employers who need financial assessment such as consulting firms, government insurance firms or even colleges and universities.

Most actuaries work in the insurance industry as they predict the cost to assume risk in different situations and how much premiums should the agency charge people for the various insurance policies. They even help such agencies predict the amount of money they would have to pay in claims if a natural disaster has occurred. Actuaries have been around since ancient times helping to lessen the damages that a person or company might incur due to different situations.

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