Actuaries Society of India

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Oxford Dictionary: "A person whose job involves calculating insurance risks and payments for insurance companies by studying how frequently accidents, fires, deaths, etc., will happen."

An actuary is a financial expert who applies mathematical and statistical methods for assessment of financial and other risks relating to various contingent events and for scientific valuation of financial products in the fields of insurance, retirement and other various benefits, investment and other related areas.

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[edit] Registration of ASI

In 1979, it was admitted to the International Actuarial Association as a member. On 14th December 1982, it was formally registered under Registration of Literary, Scientific and Charitable Societies Act XXI of 1960. A certificate of registration of the ASI under section XII AA of Income Tax Act was received on the 14th March 1984. ASI is also registered under Public Charitable Trust Act 1950

[edit] Educational and Ethical goals of ASI

  • To prepare "actuaries of tomorrow" who are adequately qualified and competent in the global context.
  • To keep the level of competence on a continuing basis for fully qualified Actuaries at a high in the global context through CPD (Continuing Professional Development) and other programs.
  • To serve the cause of public interest through Professional Code of Conduct and Disciplinary Procedures.

[edit] When was it started?

The Actuarial Society of India is the sole Professional body of Actuaries in India. It was formed in September 1944 with the objectives of:

  • Advancement of the Actuarial profession in India.
  • Providing opportunities for interaction among members of the profession.
  • Facilitating research, arranging lectures on relevant subjects.
  • Providing facilities and guidance to those studying for the Actuarial exams.

The ASI was initially started as a non-examining body when Actuaries used to get qualified from Institute of Actuaries or Faculty of Actuaries of UK. The Actuarial profession in India saw a downward trend in the early years of nationalization of the Indian insurance industry. This lead to reduction of actuarial inputs in both Life Insurance and General Insurance management and insignificant input in other areas like Pensions, Insurance Regulations, Academics, etc. The downward trend resulted in a reduction of number of students taking actuarial exams.

[edit] International Relationships

ASI is founder member of International Actuarial Association, an umbrella organization to all actuarial bodies across the world;It is actively involved in formulation of future education strategy of International Actuarial Association.

[edit] What do Actuaries do?

a) Actuaries Make Financial Sense of the Future:

Actuaries are experts in assessing the financial impact of tomorrow's uncertain events. They enable financial decisions to be made with more confidence by:

  • Analyzing the past
  • Modelling the future
  • Assessing the risks involved, and
  • Communicating what the results mean in financial terms.

b) Actuaries Enable More Informed Decisions:

Actuaries add value by enabling businesses and individuals to make better-informed decisions, with a clearer view of the likely range of financial outcomes from different future events.

The actuary's skills in analysis and modelling of problems in finance, risk management and product design are used extensively in the areas of insurance, pensions, investment and more recently in wider fields such as project management, banking and health care. Within these industries, actuaries perform a wide variety of roles such as design and pricing of product, financial management and corporate planning. Actuaries are invariably involved in the overall management of insurance companies and pension, gratuity and other employee benefit funds schemes; they have statutory roles in insurance and employee benefit valuations to some extent in social insurance schemes sponsored by government.

Actuarial skills are valuable for any business managing long-term financial projects both in the public and private sectors.

Actuaries apply professional rigour combined with a commercial approach to the decision -making process.

c) Actuaries Balance the Interests of All:

Actuaries balance their role in business management with responsibility for safeguarding the financial interests of the public. The duty of Actuaries to consider the public interest is illustrated by their legal responsibility for protecting the benefits promised by insurance companies and pension schemes. The profession's code of conduct demands the highest standards of personal integrity from its members.

[edit] Who Can Become An Actuary?

Any person with minimum 18 years of age and having a high degree of aptitude for mathematics and statistics can take up this course and become an Actuary. Generally, first class graduates or postgraduates in Mathematics, Statistics or Econometrics will be in a better position than others to qualify as actuaries.

To qualify as an Actuary, a candidate has to pass all examinations in the prescribed subjects. In addition, he has to comply with other criteria such as experience requirement and attendance at a professionalism course prescribed for the purpose.

Duration of the Course:

There is no fixed duration to complete the course. Since all the 16 subjects prescribed are to be cleared before one is awarded the Fellowship, continued and sustained effort is necessary to complete the course. Single minded devotion, total dedication and a systematic approach to problems are the qualities that will enable a person to qualify as an actuary within a reasonable time.

Actuarial Educational Model

The subjects for the examinations can be categorized in to three groups.

  • The first group Comprises of the 100 series; these involve development of theory of actuarial science and applications of mathematics and statistics to actuarial applications such as life insurance, general insurance, employee benefits, investment and other areas. An introduction to economics, financial economics and financial reporting is also included at this stage. Although most part of the course is somewhat theoretical, the exercise and the question in the examination are practical in nature as they reflect real life situations of the area of work to which the subject is applicable.
  • The second group comprises of 200 and 300 series subjects. 201 subject is mean to develop skills of communication of technical aspect of the 100 series subjects in simple language to non-technical persons; here again the stress in examination question is demonstration of the skills of communications in real life environment. The 300 series subjects are entirely tuned to development of the practices and related principles in the respective areas of work while some part of the 100 series could be learnt either through a distance education approach or through a classroom approach, the 300 series subjects can be fully understood only in a practical work environment.
  • The third group comprises of 400 series subjects involve application of knowledge and understanding of principles as well as demonstration of skills professionalism and judgment in an essentially practical situation.

The actuarial education model, therefore, is ingrained with work and application and therefore substantially these educations beyond 100 series subjects takes place in work environment. The success through examinations is linked to corresponding work experience and insight, thus gained. The examinations given at 100 series level take place, for most of the students in work environment.

The career progress is linked to progress in examination and it is very likely that by the time a student completes 300 series, he/she would be occupying management of level of responsibilities.

Graduates and postgraduates eligible to take up actuarial examinations are typically recruited by actuarial employers and placed as actuarial trainees.

With a view to emphasizing the kind of actuarial education model, it may be stated here that it is like educating medical doctors, where education needs to take place in work environment of a hospital.

[edit] See also

[edit] Actuarial organizations

Actuaries usually belong to one or more professional bodies, often national in scope. A list may be found here: Category:Actuarial associations

[edit] External links

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