Actuary Salary

Can you tell your chances of living till the age of sixty? How much of money is lost every year in calamities, accidents and robberies? This is exactly what an actuary does. Actuaries work with such figures so as to answer these questions. The primary job of an actuary is to forecast the risks involved in future natural disasters, accidents or deaths and analyze what can be the alternatives by which the financial impact of such events can be minimized on the business clients. Actuary as a career opportunity is undoubtedly a challenging task!

Actuaries determine the facts by working in accordance with statistics programs and fabricating probability charts. With the help of these charts, the actuaries are able to forecast how much to charge an insurance holder for a specific type of coverage. The insurance company should charge premium or the fee wisely, so as to pay the policyholder in case of his loss and yet make profit.

Actuaries mainly operate in the insurance industry in order to determine what should be the structure of a premium or a policy for specific situations. Over 60% of all actuaries work for privately owned insurance companies. Most of these actuaries work for life insurance companies. The remaining few work for the property liability companies. Such actuaries are also called casualty actuaries. Then there are certain actuaries that work for state or federal government agencies. In case of federal government agencies, the actuaries have to manage specified insurance programs like Social Security and Life Insurance for the ex-servicemen and members of the armed forces. Those actuaries that work for state government look after civil matters like unemployment insurance, worker's compensation, retirement plans and pension plans. State actuaries have a responsibility of regulating the rates that are charged by the private insurance players. Some actuaries also work for consulting agencies and firms, that help evaluating welfare plans for private companies, government agencies and unions. An actuary's salary in the federal government and state government domain is higher than in private firms.

Actuary Job Description
The job description of an actuary revolves entirely around the analysis of statistical data and its application, so as to reduce the financial impact that may occur in the future due to accidents, calamities and deaths. Other fields that might be associated with an actuary could be investments, pension plans, stock prices - precisely anything that involves probability and financial risks. A brief idea on actuary job description would be analyzing statistical data, such as accidents, death rates, mortality, sickness, disabilities, and retirement rates and to fabricate certain specific probability tables for these customers to forecast the risks involved and liability for the payment of future benefits of the insurance policy. It may also involve a task of ascertaining necessary premium rates and cash reserves to ensure the payment of future benefits. Here's a detailed account of actuary job description.

• Analyze statistical data to forecast mortality, accidents, deaths, disabilities and retirements.
• Fabricate probability charts for events like natural calamities and unemployment based on analysis of statistical data and the existing information.
• Form collaborations with underwriters, programmers, accounts department, claims experts and senior management, to assist companies develop plans for expansion of business or for improving existing trade.
• Design and review insurance policies, annuity and pension plans by determining financial soundness and calculate premiums.
• Determine the basis of distributing surplus earnings, so that the earnings are distributed equally, under participating insurance and annuity contracts in mutual companies.
• Decide on the contract provisions of each policy for every type of insurance and explain any changes in the contract policies (if any) to the customers.
• Determine company policies and explain the complex technical issues to company executives, shareholders, policyholders, government officials and public.
• Handle credit and help in pricing of the corporate security offerings.
• Advise the company's clients on a contract basis, as a consultant.
• Provide an expert opinion/advice to the financial institutions on major financial risks and uncertainties and help them maximize returns linked with investments and credit offerings.
• Attest/testify before public and private agencies on proposed legislation that might affect businesses.
• Testify before the court of law, as an expert witness or to provide legal proofs in matters of potential lifetime earnings of a person who is disabled or dead in an accident.

Average Salary of an Actuary
Coming to the crux of the matter, you will be surprised to know that a professional actuary, with considerable experience, can earn more than an average MBA. The salary of such a professional actuary could range from US $150,000 to US $250,000 annually. Top actuarial executives earn up to US $107,650 per year. The benefits of these top-level corporates include paid holidays, health insurance and best pension plans. The Bureau of Labor Statistics in the United States stated that actuaries' mean annual salaries was US $95,420 in 2007. Average annual actuary starting salary for those who held a bachelor's degree was US $53,754 in 2007. The entry-level actuary salaries start from US $25,000 a year. The top executives in the federal executive branch of actuaries earn up to US $99,380 while other private players, brokerage agencies and other insurance related activities earn a salary of US $96,850. Furthermore, there is always a scope for salary negotiation in later stages.

There are many websites in the career and education domain that will guide you through the entire process of becoming an actuary. Here's wishing all the aspirants a very good luck!