Join India's Best Insurance Selling Platform
Maximize Your Insurance Business With:
Insurance actuary are the persons responsible for designing insurance policies for insurance companies which involves deep study, multiple calculations, risk factors, and financial analysis.
An Insurance actuary plays a prominent role in the insurance field. They analyze the financial risks by applying a knowledge of economics and statistics. Actuary helps in calculating premiums and designing policies by evaluating data related to mortality, accidents. Insurance actuary aids insurance companies to design policies and ensure their financial stability.
Actuary’s statistics are intended to minimize the financial risks for insurance companies. Companies introduced the policies suggested by Actuary only.
In the insurance industry, there is not any single actuary work. Various types of actuaries perform different assessment programs to design different policies. For pensioner's policies, insurance companies appoint pension actuary. Let's discuss some more types of insurance actuaries.
Pensions Actuary are the experts who design policies for retired people.
Pension is an amount accumulated during the individual’s career. After retirement, they look for a scheme to invest it. Pension Actuary assess risk associated and design the scheme that is suitable to company and pensioner as well.
Actuaries evaluate the funds in the company after every three years. It’s a process to verify that pension schemes are covering the liabilities or not. Once it evaluates, actuaries advice to invest more and measures associated risks.
We all know the significance of purchasing life insurance. It’s a protection against loss due to death for your family. Actuaries managing risk related to life insurance are called Life Insurance Actuary.
Life Insurance Actuary evaluates the risk factor based on individuals smoking habits. Besides, they verify the occupation, and age of policyholders. Plus, they analyze the funds and financial status of insurance companies. Then, they issue a suggestion to the company to invest or hold the money as per the strategy.
Health insurance actuary formulates the guidelines for health insurance. They help insurance companies in designing coverages related to healthcare by assessing medical costs and health trends.
Additionally, they evaluate the policyholder’s family background, occupation, and medical history too. It helps them to plan policy pricing for various models.
Assessment of policyholder’s overall details, results in a beneficial policy. Insurance companies and policyholders both can achieve similar financial benefit from this.
It’s a fact that analysis is impossible without acquiring data. Actuaries also need data and its analysis to estimate the risks.
Obtaining valuable data, facts, figures, and information contributes to construct policy pricing models. For this, Data Analytics Actuaries make use of AI applications and ML for data collection.
It helps to know the latest trends and uncertain risks in planning a policy. Depending on data interpretation and processing, actuaries present their decisions.
General insurance includes the policies for property, vehicles, homes, or businesses. General insurance actuaries work to plan commercial property, home, and vehicle insurance policies. As per their statistics, they structure the price policies and predict claims and risk.
Numerous techniques and tools they used to deliver accurate suggestions and guidelines. Assessment of legal risks associated with the property or vehicle anticipates its benefit.
Insurance Actuary uses the mathematical models and statistical analysis to perform
● Data Collection and Analysis
● Risk assessment
● Probability Application
● Distribution of high risk and low risks policies
● Customizing policies as per the analysis
● Setting premiums
Actuary work starts from data collection. Data extracted from various sources like government reports and market trends helps them to create a graph. Whatever the policy type they are designing, accurate data is required.
Calculating risks is a next step that helps to predict coverage benefits. Analyzing the risk in case of accidents, natural calamities, or illness helps to set the policy norms. Plus, they decide if an asset is insurable or not. If it can be insured, the actuary determines its cost too.
Calculating expected loss is also essential to predict the cost of any unpleasant event. Once the whole study gets completed, a final report is prepared. In this, actuaries make adjustments in the policy as per the external factors.
Finally, premiums are set by considering the loss, company profit, and regulatory needs. Funds are calculated and saved to cover the claims and unimaginable events.
On the whole, actuary’s endeavors prove fruitful to generate profitable and sustainable policies.
Performing methodological evaluation is the prime job that actuary does in insurance companies. Apart from this, following are the responsibilities that actuaries do in insurance companies.
Actuaries in insurance companies survey the market values. According to the relevant reports, they design the policy’s structure. Deciding the norms in the policy and determining its price is an important task that actuary performs.
Actuary focuses on an individual's responsibilities and their assets. Relying on that, evaluation gets taken into account. Knowing monetary requirements is a biggest challenge to construct policy. Actuary does this job efficiently.
Actuary introduces various investment plans by examining the risks, loss, and profit margins. Ensuring the policies complying with regulations helps to enhance funds and stocks in the company. Moreover, the actuaries look for a way to generate more income to settle claim amounts all the time.
The actuary needs to investigate the assets and get suggestions from insurance agents. Ensuring whether the company can secure the assets or not helps to carry out a well-structured policy. Assuring that a company may bear financial loss also comes under the actuary’s job.
Appointed Actuary Regulations stated by the Insurance Regulatory and Development Authority of India. It appoints actuary in insurance companies.
Following are the criteria that insurance companies have to fulfil before appointing actuaries-
● Actuary must belong to India only.
● Actuary must be any graduate with minimum 60% marks.
● He/She must be a fellow member under the Actuaries Act, 2006,
● He/She must have a position as an insurance company's employee.
● He/She should not work as an actuary simultaneously in more than one insurance firm.
● He/She should be working as an actuary in some other insurance firm.
● His/Her age must be below 65.
● He/She must have a Certificate of Practice given by the Institute of Actuaries in India.
● He/She must have a clean record in the context of misconduct or any professional offence.
Life Insurance Actuary Must Have:
● Specialization in life insurance
● Post fellowship experience of 3 years.
● Life insurance actuary experience of 10 years.
For General Life Insurance Actuary Must Have:
● Specialization in general life insurance
● Post fellowship experience of 1 year.
● General Life insurance actuary experience of 7 years.
For Health Insurance Actuary Must Have:
● Specialization in health insurance
● Post fellowship experience of 1 year.
● Health insurance actuary experience of 7 years.
Actuary is a reputed position in insurance companies. Actuary contributes to streamline insurance company’s policies. They are the responsible employees that save the company from getting into financial trouble. On the whole, actuaries are the unavoidable part of the Indian Insurance Industry. A highly crucial part of the company has multiple responsibilities on their shoulders. Without this, the insurance companies may collapse.
Both actuaries analyze overall risk associates and help in designing the insurance policies whereas underwriters assess individual applications, use tools and decide whether to approve or reject them.
An Insurance Actuary is a knowledgeable person to design policies for insurance companies. They plan and implement financial strategies to grow insurance business.
Yes, in India, the Institute of Actuaries of India exists. It was established under the Actuaries Act 2006 for the purpose of regulating actuarial profession.
Yes, actuaries are required for both general and life Insurance. They design the different policies and that delivers the profit to the company.
Insurance Actuary must have excellent analytical abilities along with strong mathematical calculations. They must adapt problem solving skills, and comprise the knowledge of probability and statistics.
