Actuarial science is a discipline that assesses financial risks in the insurance and finance fields, using mathematical and statistical methods. Actuarial science applies the mathematics of probability and statistics to define, analyze, and solve the financial implications of uncertain future events. Traditional actuarial science largely revolves around the analysis of mortality and the production of life tables, and the application of compound interest.
Actuarial science attempts to quantify the risk of an event occurring using probability analysis so that its financial impact can be determined. Actuarial science is typically used in the insurance industry by actuaries. Actuarial science became a formal mathematical discipline in the late 17th century with the increased demand for long-term insurance coverage
Actuarial science spans several interrelated subjects, including mathematics, probability theory, statistics, finance, economics, and computer science. Historically, actuarial science used deterministic models in the construction of tables and premiums. In the last 30 years, science has undergone revolutionary changes due to the proliferation of high-speed computers and the union of stochastic actuarial models with modern financial theory.
- Actuarial science assesses financial risks in the insurance and finance fields, using mathematical and statistical methods.
- Actuarial science applies probability analysis and statistics to define, analyze, and solve the financial impact of uncertain future events.
- Actuarial science helps insurance companies forecast the probability of an event occurring to determine the funds needed to pay claims.
- The professions code of conduct demands the highest standards of personal integrity from its members
- Evidently, the scope of the functions and duties of an Actuary has increased considerably under the changed conditions.
Table of Contents
Actuarial Science India
The first step to practicing actuarial science in India is by becoming a member of the Institute of Actuaries of India (IAI) clear their entrance exam – Actuarial Common Entrance Test (ACET). You can appear for the entrance just after your class 12th or even if you are a graduate/postgraduate. ACET is a 100 marks test and is conducted online.
There are no regular colleges or classes for this course, only examinations that you are required to clear. The IAI provides the reference study material for them.
According to the IAI, there are only 9182 students, 160 associates, and 344 fellows in India. The demand for qualified Actuarial practitioners in India is much higher than their supply and hence, the average salary in this field is quite high.
Actuarial Science Course
B.Sc. Actuarial Science is a 3-year long Bachelor’s program. The course curriculum is designed to teach students core skills like mathematical skills, real-world business skills, communication, interpersonal, and leadership skills.
Related fields such as Insurance and Risk Management are also covered in the curriculum. To be eligible to pursue this course, the student must have completed 10+2 and must be enrolled with the Institute of Actuaries of India as a student member. The average tuition fee charged in India for B.Sc. Actuarial Science course ranges between INR 50,000 and 3 Lacs. The average starting salary lies generally between INR 3 and 6 Lacs annually, increasing with experience in the field.
Actuarial Science Exams
The first step to becoming a member of the Institute of Actuaries of India (IAI) and becoming a practicing Actuary is to clear their entrance exam – Actuarial Common Entrance Test (ACET). You can appear for the entrance just after your class 12th or even if you are a graduate/postgraduate. ACET is a 100 marks test and is conducted online. The test, lasting 3 hours, is divided into 2 sections:
- Section 1 includes Mathematics, Statistics, and Data Interpretation.
- Section 2 includes English and Logical Reasoning.
Since Actuarial Science is a professional course, you are required to clear different examinations/stages to pursue this field. These are written as well as practical exams conducted by the IAI.
There are no regular colleges or classes for this course, only examinations that you are required to clear. The IAI provides the reference study material for them.
There are a total of 15 papers divided into 4 stages:
- Stage 1: Core Technical (CT)
- Stage 2: Core Application (CA)
- Stage 3: Specialist Technical (ST)
- Stage 4: Specialist Application (SA)
You get to choose your subjects/papers from these 4 stages. You are required to clear all the papers (9 in total) from Core Technical, all 3 papers from Core Application, any 2 (out of 8) from Specialist Technical (ST), and any 1 (out of 6) from Specialist Application.
Once you clear the first two stages, you are termed an Associate with the IAI. On clearing all 4 stages, and acquiring 3 years of experience, you become a Fellow. As a fellow, you can pursue further studies and research in the field.
However, clearing 5 papers is enough to fetch you a job as an Actuary. There is no defined timeframe to clear the exams, and you can complete them at your own pace.
Actuarial Science India Salary
The average starting salary for a fresh actuarial science graduate lies generally between INR 3 and 6 Lacs annually, increasing with experience in the field. Experienced actuaries earn anywhere between 25-40 lakh.
Actuarial Science Colleges In India
There is no specific eligibility requirement for graduation, but B.Sc Mathematics and B.Sc Statistics are recommended courses. They will allow you to form a strong base in mathematics, probability concepts, analytical and problem-solving skills, and statistics, which all form the foundations of Actuarial Science.
There are other courses as well, ones that allow you to work in this field directly, including B.Sc. (Actuarial Science) and M.Sc (Actuarial Science).
- Indian Statistical Institute (ISI), Kolkata
- Indian Institute of Science (IISc), Bangalore
- Chennai Mathematical Institute, Chennai
- National Institute of Science Education and Research, Bhubaneshwar
- Tata Institute of Fundamental Research (TIFR), Mumbai
- Delhi University (Various Colleges)
- University of Madras, Chennai
- Xavier’s College, Mumbai & Kolkata
- Fergusson College, Pune
- Indian Agricultural Statistics Research Institute (IASRI), New Delhi
- University of Mumbai, Mumbai
- Presidency University, Kolkata
- Christ University, Bengaluru (M.Sc Actuarial Science)
- Bishop Heber College, Tiruchirappalli (B.Sc. Actuarial Mathematics Science)
- Babu Banarasi Das University, Lucknow (B.Sc Actuarial Science)
- Mahatma Gandhi University, Kerala (M.Sc Actuarial Science)
- Institute of Endurance and Risk Management (Post-Graduate Diploma Health Insurance)
Actuarial Science In UK
Over 100 courses are offered in Actuarial Science at over 30 universities in the UK. Most of these universities rank well globally such as LSE, Warwick, and Manchester, and students come from all over the world to study in them. These universities offer great prospects to students applying for work after the completion of their degree. Students in this field can secure a brighter future as actuaries are valued and respected with a high demand worldwide.
Students applying to study Actuarial Science should pursue their undergraduate degree at a university that offers courses recognized by the IFoA. This can give them exam exemptions based on good performance under the IFoA in the UK.
Listed below are the best universities to study Actuarial Science in the UK.
- Cass Business School, City, University of London
- London School of Economics and Political Science
- Heriot-Watt University
- University of Warwick
- University of Southampton
- University of Manchester
- Queen Mary University London
- Kent university
- University of Leicester
- University of Leeds
Actuarial Science Canada
Most people who want to work as an actuary need to become certified and licensed. In Canada, this happens through the Canadian Institute of Actuaries. Once certified, actuaries often work in the insurance and pension industry as general business managers or financial officers. There they work to come up with effective insurance and pension plans for various companies and organizations. This includes life, health, and property insurance.
Some actuaries can act as expert witnesses by applying their analysis in court trials to estimate the economic value of losses such as lost profits or lost wages. Actuaries are also now being employed to provide investment advice and asset management for various companies.
Actuaries can also work in academia, teaching actuarial science, financial mathematics, or statistics to post-secondary students while at the same time doing actuarial science research.
A degree in actuarial science can be combined with a business or law degree to allow for a more flexible career as a business analyst or corporate lawyer.
Actuarial Science Eligibility
The basic minimum eligibility criteria for pursuing the course are listed below:
- 10+2 qualification with a minimum of 60% in aggregate, and a minimum of 70% in aggregate in Maths.
- Enrollment to the Institute of Actuaries of India as a Student Member.
- A class XII or equivalent qualification with at least 85% in Mathematics or Statistics.
Actuarial Science Syllabus
B.Sc. Actuarial Science: Syllabus and Course Description
A semester- wise breakup of the course is tabulated below.
| Semester 1 | Semester 2 |
| Application of Calculus in Actuarial Science [Core Courses] | Country Report [SAP Courses] |
| Mathematical Functions [Core Courses] | Creating Global New Ventures [SAP Courses] |
| Probability & Statistical Methods-I [Core Courses] | Modern Trends & Innovative Solutions through Technology Management [SAP Courses] |
| English Language Usage Essentials [Communication Skills] | Understanding Business Environment in Global Scenario [SAP Courses] |
| Understanding Self for Effectiveness [Behavioral Science] | Foundation of Regulation of Insurance Business [Human Social Sciences & Management Courses] |
| Analytical Geometry of 2 Dimension [Allied Courses] | Management Foundation [Human Social Sciences & Management Courses] |
| General Insurance – I [Allied Courses] | Actuarial Application in I.T.-I [Core Courses] |
| Life Insurance – I [Allied Courses] | Methods of Applied Mathematics [Core Courses] |
| Numerical Methods & Application [Allied Courses] | Probability & Statistical Methods-II [Core Courses] |
| Foreign Business Language | Introduction to Communication Skills [Communication Skills] |
| Open Elective Courses | Individual Society and Nation [Behavioral Science] |
| Outdoor Activity Based Courses | General Insurance – II [Allied Courses] |
| Open Elective Courses | Life Insurance – II [Allied Courses] |
| Outdoor Activity Based Courses | Foreign Business Language |
| Semester 3 | Semester 4 |
| Business Research Methods in Global Environment [SAP Courses] | Country Report [SAP Courses] |
| Country Report [SAP Courses] | Creating Global New Ventures [SAP Courses] |
| New Leadership in Cross-cultural context [SAP Courses] | Modern Trends & Innovative Solutions through Technology Management [SAP Courses] |
| Strategizing using Innovation [SAP Courses] | Understanding Business Environment in Global Scenario [SAP Courses] |
| Minor Project – I [Non-Teaching Credit Courses] | Liability Insurance [Human Social Sciences & Management Courses] |
| Actuarial Accounting – I [Core Courses] | EMERGENCY RESPONSE AND LIFE-SAVING SKILLS [Domain Elective Courses] |
| Actuarial Application in I.T.-II [Core Courses] | Actuarial Accounting-II [Core Courses] |
| Probability & Statistical Methods-III [Core Courses] | Actuarial Application in I.T.-III [Core Courses] |
| Sampling Techniques [Core Courses] | Fundamental of Life Insurance Underwriting [Core Courses] |
| Time Value of Money [Core Courses] | Investment Project Appraisal [Core Courses] |
| Effective Written Communication [Communication Skills] | Principles of Finance [Core Courses] |
| Problem Solving and Creative Thinking [Behavioral Science] | Probability & Statistical Methods-IV [Core Courses] |
| Actuarial Economic Models-I [Allied Courses] | Professional Communication for Recruitment and Employability [Communication Skills] |
| Introduction to Health Insurance [Allied Courses] | Values and Ethics for Personal and Professional Development [Behavioural Science] |
| Foreign Business Language | Foreign Business Language |
| Open Elective Courses | Open Elective Courses |
| Outdoor Activity Based Courses | Outdoor Activity Based Courses |
| Semester 5 | Semester 6 |
| Foreign Business Language | Foreign Business Language |
| Open Elective Courses | Open Elective Courses |
| Outdoor Activity Based Courses | Outdoor Activity Based Courses |
Actuarial Science BSc
Bachelor of Science in Actuarial Sciences is a 3-year undergraduate course designed for candidates who seek a career in the banking, investment, and finance industry. The course comprises a diverse study of different fields of mathematics and statistics. Students are taught to decipher economic patterns and market trends, interns of figures and numbers. The course also comprises communication methodologies and study of risk management to teach the students how to prevent investment losses.
- Actuarial Science is one of the highest paying fields in the BFSI sector and lucrative jobs are offered at graduate as well as postgraduate level.
- Freshly graduated candidates can expect a starting salary of Rs. 2.5 lakh to Rs. 5 lakh.
- Experienced professionals and MBAs in this field are also offered packages up to Rs. 15 lakhs.
MSc Actuarial Science
M.Sc. in Actuarial Science is a 2-year long course divided into 4 semesters, minimum eligible qualification for which is a B.Sc./ B.Com. degree with a minimum aggregate score of 50%, with Mathematics and Statistics as two of the main subjects.
The average tuition fee charged for the course in India ranges between INR 1 and 4 Lacs. Admission to the course is based on the candidate’s performance in a relevant entrance examination carried out by different universities, such as the Actuarial Science Entrance Exam, Institute of Actuaries of India Entrance Exam, and Actuarial Society of India Entrance Exam.
Actuarial Science Course Fees
The average tuition fee charged in India for B.Sc. Actuarial Science course ranges between INR 50,000 and 3 Lacs.
The average tuition fee charged for the M.Sc. Actuarial Science in India ranges between INR 1 and 4 Lacs.
The average starting salary offered to such postgraduates ranges between INR 4 and 10 Lacs per year, increasing with experience in the field.
Actuarial Science Scope
Actuarial Science is one of the most popular courses among those who have a knack for numbers, statistics, and data. It is a field with the immense scope if you have the right set of skills and analytical abilities. According to the IAI, there are only 9182 students, 160 associates, and 344 fellows in India. The demand for qualified Actuaries is much higher than their supply and hence, the average salary in this field is quite high.
You can work in multiple areas in both the private and government sectors. Within the field of insurance, you can work in different areas, such as health insurance, vehicle insurance, life insurance, employee retirement and benefit plans, general insurance, etc. In the life and health insurance fields you will get to help companies in developing health and long-term insurance policies. Besides insurance companies, you can work in Pension and Benefits firms.
You can also hold managerial roles in the domain of actuarial science. An MBA in Insurance or Actuarial Science will give you the expertise to manage insurance and risk projects and ensure their smooth functioning.
You can even work as a consultant and advice companies in multiple areas such as life insurance, taxation, employee benefits, risk management, investment, etc.
Check Out: Chartered Accountancy
FAQ
Ans. Actuarial Science and CA both are difficult while CA is more difficult because the student has to study along with the internship.
The student needs to clear the CA final so that he/she could be paid well by employers. So actuarial science could seem to be a bit lighter with respect to job security and other stuff.
Ans. Actuarial science’s new career emerged, but there is an age restriction. A person with actuarial science can be a part of the banking and business field.
Ans. Actuarial science is a business expert that uses mathematics, statistics, and financial theory to study uncertain future events consequences of risk over a business.
Ans. The demand for actuarial is increasing day by day, there is a 20% growth projected till 2028. This growth will result in an increase of about 5,000 new jobs over the 10-year period.
Ans. The qualification required for an actuary is:
1. Actuarial science
2. Mathematics
3. Statistics
4. Economic
5. Engineering
6. Chemistry
7. Physics
Comments (0)