All about career in Actuarial Science


Actuaries are the people who evaluate and assess risk in different commercial ventures. They have special skills in statistics, mathematics, economics and computer programming. They also need to be good communicators as they interact with people from different walks of life.

What is Actuarial Science?

Actuarial science is the science of risk and uncertainty. It’s the discipline that uses statistical modelling, mathematics, economics and other quantitative tools to assess the financial risk involved in certain events. The main task of an actuary is to calculate various parameters based on data collected by his or her company.
The following are some examples of how an actuary can help:

1. Evaluating insurance premiums based on statistical models

This includes mortality tables used for calculating payouts based on age at time of death or disability; morbidity rate; terminal illness rate; length-to-life expectancy tables; life table analysis (monte carlo simulation); health care cost projections/reimbursement rates; expected return on investment (EROI) calculations related to long term care facilities; etc.
For example, when insurance companies sell life insurance policies, they take into account the health condition and age of an individual to determine how much premium they will have to pay. It is only possible with actuaries who have special skills in statistics and mathematics.
2. Calculating reserve requirements for banks.

Career in Actuaries:

In India, most of the students prefer to give exam either from Institute of Actuaries of India (IAI) or Institute and faculty of Actuaries of India (IFOA, UK).
For IAI:
The student must clear Actuarial Common Entrance Test (ACET)
a. It is Conducted twice a year.
b. It Covers Logical Reasoning, Data Interpretation, English, Mathematics & Statistics.
The total number of exam the candidate needs to give is 13 and maximum 3 Subjects Per Attempt can be given by a student.
For IFoA:
For Student Membership
85% in 12th Mathematics or At least 55% in Graduation (Mathematics/Economics/Statistics)
As a Non-Member 
As such no eligibility Criteria, anyone can give CM1 or CS1 as first exam
The total number of exams the candidate needs to give is 13 and there is no limit of attempts.

Exam Details:

In total we have 28 Exams, out of which 13 Exams has to be cleared from IAI or/and IFOA to become an Actuary. All these 28 Exams are divided into Four groups as:-

CORE PRINCIPLES (All 7 Papers are compulsory)

1. CS1 Actuarial Statistics 
2. CS2 Risk Modeling And Survival Analysis
3. CM1 Actuarial Mathematics 
4. CM2 Financial Engineering And Loss Reserving
5. CB1 Business Finance 
6. CB2 Business Economics
7. CB3 Business Management  
CORE PRACTICES ( All 3 Papers are compulsory)
1. CP1 Actuarial Practice 
2. CP2 Modelling Practice
3. CP3 Communications Practice  
1. SP1 Health And Care 
2. SP2 Life Insurance
3. SP4 Pension And Other Benefits 
4. SP5 Investment And Finance
5. SP6 Financial Derivatives 
6. SP7 General Insurance Reserving And Capital Modelling
7. SP8 General Insurance – Pricing  
SPECIALIST ADVANCED ( Only 1 Paper is Compulsory)
1. SA1 Health And Care
2. SA2 Life Insurance
3. SA3 General Insurance 
4. SA4 Pension And Other Benefits
5. SA7 Investment And Finance  
To become an Associate, Student must have:
7 Core principle exams cleared
3 Core principle exams cleared
Minimum 1-year work experience in Actuarial Industry
To become a Fellow, student must have:
All 13 exams cleared
Minimum 3 years of work experience in Actuarial industry.
Other Courses in Actuarial Science 
As per the 2023 Actuarial Sciences Institute, candidates can seek other courses, and we have listed them below:
1. MBA Actuarial Science 
2. PG Diploma in Actuarial Sciences
3. B.Sc. Actuarial and Financial Mathematics 
4. B.Com. Actuarial Science
5. B.Sc. Actuarial Science 
6. M.Sc. Actuarial Science
Bachelor Degree in Actuarial Science:
1. Candidates must pass class 12.
2. Higher education, with more importance to mathematics as a subject, is expected.
3. Admissions are on a merit basis.
Master Degree and PG Diploma in Actuarial Science:
1. Requires 60% aggregate marks (minimum) with passed graduation.
2. PG Diploma and MBA course admissions are based on entrance exams like MAT, CAT and CMAT.
To get all the information you need about Actuarial Science, please read our blog posts. We are always happy to answer your questions and provide guidance on how best to prepare yourself for this career path.

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