MSC ACTUARY SCIENCE: Life as an Actuary

INTRODUCTION:

As an actuary, you'll learn how to analyse data, evaluate financial risks, and communicate this data to non-specialists.

An actuary evaluates, manages and advises on financial risks. They use their knowledge of business and economics, together with their understanding of probability theory, statistics and investment theory, to provide strategic, commercial and financial advice.

As an actuary, you will use financial and statistical theories to assess the likelihood of a particular event occurring and the possible financial costs.

You will need to apply your mathematical, economic and statistical awareness to real situations in the financial world and be able to communicate the difficult topics to non-specialists. Therefore, it is important that you can communicate easily with others and that you possess the ability to discuss complex topics in a simple way

Responsibilities

Specific tasks vary but your work might include:

• using mathematical modelling techniques and statistical concepts to determine probability and assess risks, such as analyzing pension scheme liabilities, to price commercial insurance;
• analyzing statistical data in order to calculate, for example, accident rates for particular groups of people;
• developing new financial products;
• preparing presentations, reports, valuations and quarterly updates;
• monitoring risk within trading positions in investment banking to ensure excessive risks are not taken during the fast pace of trading;
• presenting reports, explaining their implications to managers and directors and advising on risk limitation;
• advising on issues such as the selection of investment managers or the administration of pensions and benefits;
• working with IT professionals to develop systems to ensure compliance with the requirements of regulatory bodies;
• communicating with clients and carrying out relationship management, including with investment managers, financial directors and external stakeholders;
• supervising staff;
• working with mergers and acquisitions.

Qualifications

Although this area of work is open to all graduates with strong numerical skills, the following degree subjects may increase your chances:

• Actuarial science or actuarial mathematics;
• Business or finance;
• Economics;
• Engineering;
• Mathematics or statistics;
• Risk management;
• Science, e.g. physics and chemistry.

Skills You will need to have:

• a high level of numeracy;
• good communication skills, including the ability to convey complex information to clients;
• analytical, research and creative problem-solving skills;
• IT skills;
• the ability to write clear reports;
• the ability to take responsibility;
• excellent people, interpersonal and listening skills;
• strong teamwork ethic;
• self-discipline, determination and an appreciation of the demands of studying while working;
• sound judgement and a genuine interest in business;
• commitment to an actuarial career.

Types of Actuary

Actuaries work in these areas:

• banking;
• corporate finance;
• investment management;
• life, healthcare and general insurance;
• pensions.

What we do: Areas of Expertise

We manage risk.
The future is uncertain and full of risk. Risk is the chance that an undesirable event will occur, but risk is also opportunity. That's where we come in.

Actuaries are experts in:

Evaluating the likelihood of future events—using numbers, not crystal balls.
Designing creative ways to reduce the likelihood of undesirable events.
Decreasing the impact of undesirable events that do occur.
We are the leading professionals in finding ways to manage risk. It takes a combination of strong analytical skills, business knowledge, and understanding of human behavior to manage today's complex risks facing our society.

We're key players on the management team of companies that deal with risk. In a fast-changing world, with emerging risks and the need for more creative ways to tackle them, there are constant opportunities for personal and professional growth.

We are the analytical backbone of our society's financial security programs. We are the brains behind the financial safeguards in our personal lives, so we can go about our day without worrying too much about what the future may hold for us.


But our skills and talents are transferable to any industry that requires risk modeling and management, including:

• Insurance services: auto insurance, life insurance, 
• Financial services, such as banking and investment management.
• Transportation, such as shipping and air travel.
• Energy, such as utilities, oil, and gas.
• Environment, on issues such as climate change.

Anywhere Risk is Present.

The insurance industry can’t function without actuaries. We calculate their costs and determine the premiums for policyholders; and while we don’t forecast the weather, we can tell them how much they can expect to pay in claims after the next Florida hurricane.

Private corporations rely on our risk evaluation to frame their strategic management decisions. And because our judgment is highly valued, our career paths often lead to upper management and executive positions.

We’re also employed as consultants. Whether we’re part of a nationwide firm or an independent one-person practice, we help companies design pension and benefit plans, evaluate assets and liabilities, and stare down risk–all alongside top executives.

We work for the government too, helping manage its programs and overseeing public companies to ensure compliance with regulatory laws.

WHERE YOU CAN WORK:

• Colleges and universities
• Banks and investment firms
• Public accounting firms
• Labor unions
• Rating bureaus
• Fraternal organizations

You can see that there’s ample opportunity for actuaries

How Actuaries manage risk.

Explaining what we do would not be complete without explaining risk.

Risk comes in many forms. Everybody and every organization faces risk. As experts in measuring and managing risk, we fill a significant need in our society. Our contribution to society's psychological, physical and economic well-being is incredible. If our risk management programs didn't exist, our economy would not be able to flourish.

To illustrate, here are just a few of the problems we solve:

We determine how much an insurance company should charge for auto insurance, taking into account many factors such as the car that is being insured and details about the driver.

We develop life insurance products so that parents can enjoy adventurous recreational activities such as rock climbing while feeling secure that their children will be cared for in the event of an accident.

We determine how much an insurance company should charge for homeowners insurance, considering a number of factors such as where the home is located.
We determine how much an insurance company should charge businesses for the many different types of insurance that businesses need, such as liability insurance and business interruption insurance.

We help companies establish their retirement plans.
We assist banks in managing their assets and liabilities and develop ways to manage financial risk.
Risk is at the heart of the problems we solve.

Universities with Actuarial Programs in NIGERIA

1, University of Lagos
2. UNIVERSITY OF IBADAN
3, Lagos State University
4. IMO State University
5. University of UYO

Entrance Exams Materials:

Actuarial and Risk exams are mostly keenly contested. The exams contents are mostly mathematical in natures. for the entrance exams for the MSC program for the schools listed above, especially the Unilag download the past questions below:

http://bit.ly/1OkHVt3

Career prospects

Once qualified, actuaries can progress quite quickly to managerial positions with greater levels of responsibility for project work and team management, including mentoring new trainees.

An actuarial career offers a great deal of flexibility, and although an actuary may choose a particular area of specialisation such as consultancy, investments, life assurance, general insurance, pensions or reinsurance, it is still possible to change areas later in your career. For instance, some actuaries move from pensions firms to work in investment banks or asset management firms, or into large corporations.