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[MY DREAM JOB]

[NAME]

[PROFESSOR]

[COURSE TITLE]

[DATE]

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INTRODUCTION
From a young age I have always been fascinated by studying patterns and modelling
mathematical structures. With regard to this interest, my dream job was steered into a field of
mathematical research, that is, Actuarial Science. Actuaries are associated with assessment of
probability and prediction of financial risks using financial theory, mathematics and statistics.
“They provide crucial predictive data upon which major business decisions are made” (F.E.
Szabo, 2013, p. 1). This paper analyzes the career of an actuary in the insurance market, the
skills required as well as the benefits and compensation in this organization.

JOB ANALYSIS
Job Title:

Insurance Actuary

Department:

Underwriting

Reports to:

Actuarial and Statistical Department Manager

Classification: Full Time Employee
Company:

Rose and Kiernan Inc./ New York

1. Basic function and scope of job
The job summary of actuaries entails managing corporate risk, predicting financial trends
and drafting financial reports for insurance companies. Employees use mathematics and
statistics to measure, manage and decrease financial consequence. “Actuaries evaluate the
likelihood of future events. They also design ways to reduce the financial impact of
undesirable events that do occur” (M. Hafeman, 2009)
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2. Work Performed
Hafeman (2009) defines duties of actuaries as designing new insurance products,
predicting possible financial loss and change in market trends, mathematical
computation of premium rates and calculation of the insurance company’s liability to its
policy holders. The insurer gets to know the amount of capital to be generated such that
the company meets its obligations. The number of hours put into work by an average
actuary per week are 35 (T. Miller, 2013).
3. Work Contact
A good actuary must have the ability to influence and persuade clients to buy insurance
premiums. This is attained by maintaining a record of contacts together with the sales
status. Actuaries identify clients to be insured, make initial contact, present to the clients,
follow up and then undertake closing procedures.
4. Decision making authority
Mid-level management that assists the insurance company to avoid undesirable events by
making wise decisions that determine its future.
5. Supervisory responsibility
Insurance actuaries can be employed as consultants that get to work with different
insurance companies. Experienced actuaries may be given supervisory duties. This
involves delegation of duties to other financial experts such as underwriters, accountants
and financial analysts. They also advice senior management in insurance companies on
capital requirements and risk expectation.
6. Physical Effort

3

Actuaries take up technical roles by calculating insurance rates, forecasting financial loss
and designing insurance products. Those with knowledge and experience take up
managerial roles and carry out operational and executive tasks. An average actuary works
for more than 30% of a day, accounting for a minimum of 8 hours. They should be able
to sit for long working hours.
7. Skills
Actuaries are expected to have good computer skills with expertise in Windows operating
system, MS Office including Word, Excel and MS PowerPoint for computation and
presentation, specialty in mathematics, analytical and problem solving skills and good
communication skills.
8. Education and training
Most companies accept employees with a minimum qualification of a college bachelor’s
degree in Mathematics, Statistics, Economics or Actuarial Science. Candidates need a
strong academic record in mathematics, statistics, economics and corporate finance.
Upon completion of their degree, actuaries that have passed IFoA tests and have been
certified are much more likely to find a good insurance company
9. Years of experience
Fresh graduates are employed by insurance companies as analysts. With about six to tenyear experience, the analysts become consultants and after an additional five-year period
they become senior consultants. To work in management, actuaries need about 3 years of
working experience to perform delegator duties at supervisory level.

10. Success factors

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Ability to close an insurance sale

•

Easily adapting to changing financial conditions

COMPENSATION AND BENEFITS P...