Actuary Essay

947 Words2 Pages
bulb-icon

Recommended: Introduction to actuarial science

Jessica Lauren Moon
February 26, 2014
Stats II
Paper #1

Actuary

Uncertainty is an aspect of life that cannot be ignored, and with that uncertainty comes a level of risk. Risk can result in a horribly undesired event or it could produce unimaginable success. Which will happen is a question that can be analyzed and answered to the best of their knowledge by actuaries. They “are the analytical backbone of our society's financial security programs… and the brains behind the financial safeguards in our personal lives” (Beanactuary), so that individuals can live without worrying too much about what the future may hold.

An actuary is a business professional who analyzes the financial consequences of risk. Actuaries use “mathematics, statistics, and financial theory to study uncertain future events, especially insurance and pension programs” (Purdue). Actuaries foster “formulas to predict how much money an insurance company will pay in claims, which results in determining the overall cost of insuring a specific group, business, or individual” (Ferguson 20). An increase in risk raises potential cost to a company, which, in turn, raises its rates. Actuaries analyze risk to estimate the number and amount of claims an insurance company will have to pay. They ultimately assess the cost of funding the business and incorporate the results into the design and evaluation of programs. A career as an Actuary is better described as a "business" career with a mathematical basis than as a "technical" mathematical career.

Within this profession there is a lot of depth within the title of an actuary. Actuaries typically do many different activities to come to the specific results. They spend a lot of time “compiling statistical data and other per...

... middle of paper ...

... lot of focus, hard work, consistency, and motivation to prepare for and successfully complete each exam that has to be taken. Typically each candidate wanting to be an actuary “studies for about 100 hours for every hour of the exam” (actuary.org). “Potential employers suggest the minimum requirements for hiring are a 3.2 GPA or higher and at least 1 actuarial exam” (Purdue). Desirable qualities that are sought after within an applicant are technical ability, communications skills, and a diverse background including courses in mathematics, statistics, business, and the liberal arts. The actuarial exams, consisting of 30-35 multiple-choice problems and lasting around 3 hours, administered by both the SOA and the CAS, cover a variety of subjects of importance in the insurance industry such as probability, interest theory, risk management, and life contingencies.

Show More
Related

  • Millercoors Case Study

    1381 Words  | 3 Pages

    All organizations and industries experience risk exposure, from both internal and external events. Accordingly, with outcome speculation being uncertain, organizations can experience either negative or positive effects. In general, the IS31000 defines risk as the “effect of uncertainty on objects” (Elliott, 2012 p.1.4). Consequently, the application of risk management practices helps minimize the effects of risk uncertainty on an organization and is accomplished through coordinating an organization’s activities by establishing control and creating policies in regards to risk. Risk’s most evident category is hazard risk which encompasses risk from accidental loss. In addition, operational risk stems from controls,

    Read More

  • Actuarial Malpractice

    515 Words  | 2 Pages

    For most professionals, designations must be acquired through a series of training and schooling. In the United States, actuarial candidates have the opportunity to be a part of the following organizations: the Society of Actuaries, the Casualty Actuarial Society, the Conference of Actuaries in Public Practice, and the American Academy of Actuaries. Each of these societies has specific requirements in the realm of passing exams and attaining work experience in the actuarial field.

    Read More

  • Analytical essay

    620 Words  | 2 Pages

    “I Stand Here Ironing” by Tillie Olsen, is a story about a mother's struggle to balance the demands of raising children and having to work to make ends meet during the Great Depression. The story’s primary focus is on the relationship between the narrator, a mother, and her first child, Emily. Throughout the story, the narrator reflects on the decisions and mistakes she made while raising Emily. The narrator was detached from Emily almost completely during her younger years, but she desires an emotional connection to her, like she has with her other children. She also wants Emily to have a better life than she had.

    Read More

  • Tax Auditing Essay

    803 Words  | 2 Pages

    The effectiveness of tax auditing means that the tax auditors had performed an effective work without any impact on the tax payers. There are five factors that considered as the determinants for the effectiveness of tax auditing, which are audit quality, management support, organizational setting, attributes of the audited party and organizational independence. The tax audit effectiveness also refer to the ability and capability of a tax audit to provide useful findings of auditing and recommendations which would attracted the management’s interest. The management that support with resources and implement the recommendations of tax audit is essential for reaching the tax audit effectiveness. Besides, the organizational setting in operations

    Read More

  • The United States and Illegal Immigration

    1096 Words  | 3 Pages

    Rousmaniere, Peter. “Facing a tough situation.” Risk & Insurance 17.7 (June 2006): 24-25. Expanded Academic ASAP. Web. 23 March 2011.

    Read More

  • Auditor Essay

    1822 Words  | 4 Pages

    John Cage has always been known as a controversial and new age composer. Some say that his pieces lack the very structure that makeup classic forms. I argue that John Cage’s work Living Room Music, despite instrumentation with no set pitch, has conclusive harmonies and is in the style of a Baroque suite. This is a strange concept for some because pitch has become such a focal point around harmonic analysis when in reality it can be determined simply by ensemble texture and dominate features.

    Read More

  • An Accounting Problem

    1182 Words  | 3 Pages

    External pressure from our Life Insurance partners wanted us to commit to using their services. Life Insurance had designed and implemented an accounting system a few years ago that provided wonderful functionality. This system is being used by most of the enterprise although there is no corporate mandate requiring administration areas to use it. While the functionality of this system is quite detailed and impressive, it fails to meet all of the needs of the annuity business customers. Because the annuity business requirements were quite extensive, the life insurance group could not commit to the necessary enhancements that would be required to their system to satisfy annuity users. Because of these business requirements, we then conducted an extensive analysis to determine what Annuities IT could do to satisfy the business requirements. The analysis revealed that we could build our own accounting system for only 25% of the cost of using the life insurance system.

    Read More

  • Definition of Health Insurance

    897 Words  | 2 Pages

    ...t quickly to have a competitive advantage. Also, said companies may not employ actuaries on a full-time basis. For example, some companies may only employ the assistance of an actuary on a consulting basis for some large scale projects. Alternatively, an actuary might be hired to fill a ‘multifaceted’ role at a company that may include a combination of roles such as marketing, client management or financial duties in addition to traditional analytical work.

    Read More

  • Estate Planning Essay

    1123 Words  | 3 Pages

    The objective of this discussion is to review some of the myths and realities of estate planning. A number of articles have been written on the subject but let's see if we can't put a different spin on it by keeping it simple. By dispelling some of the common misconceptions, we will have a better understanding of how important it is to take positive action to keep our estate plans in order. The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) threw many individuals for a loop when it came to estate planning.

    Read More

  • Qualities Needed for Management in Today's Turbulent Business Environment

    2295 Words  | 5 Pages

    J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.

    Read More

  • Essay On Managerial Accounting

    792 Words  | 2 Pages

    Managerial accounting has changed over the years. Managerial accounting focuses on more than the financial aspect. We will be looking at how managerial accounting affects the business world today. Business also look to the economy, federal taxes, and the financial market so it can make the best decisions for their business.

    Read More

  • Risk Management: COSO and SHAMPU frameworks

    2000 Words  | 4 Pages

    Ward (2005) points out that different people have different viewpoints about risks and uncertainties. Some people point out that risk not only can increase an uncertainty thereby causing the difficulty of adverse effect but also can create the higher level of uncertainty thus resulting in the increase in the complexity. In terms of uncertainty, it can be classified into tw...

    Read More

  • Accounting Cycle Essay

    791 Words  | 2 Pages

    The accounting cycle is a series of steps starting with recording business transactions and leading up to the preparation of financial statements. This financial process demonstrates the purpose of financial accounting–to create useful financial information in the form of general-purpose financial statements. In other words, the sole purpose of recording transactions and keeping track of expenses and revenues is turn this data into meaning financial information by presenting it in the form of a balance sheet, income statement, statement of owner’s equity, and statement of cash flows.

    Read More

  • Pursuing a Career as an Accountant

    1072 Words  | 3 Pages

    Accountants are becoming a needed job in the business industry and play a very important role in the success of many businesses. This job usually requires at least a bachelor’s degree in accounting and sometimes even a CPA (Certified Public Accountant). There are many other things that are needed to be considered before choosing this career. The job environment, education, skills, and benefits are just some of the many things that need to be thought through before considering this career.

    Read More

  • The Importance Of Accounting In Our Modern Society

    2459 Words  | 5 Pages

    Accounting is one of the fastest growing fields in the United States It expands each time a new store, a factory, a filling station, or a school goes up, whether in a large city or a small town. In today's society, the demand for good accountants for exceeds the supply. As our country has expanded, business and industry have become more and more complex, so control here is very important. And control depends on a great deal of the bookkeepers and accountants who can analyze figues and advise management on what should be done. They are using more scientific ways changing money, figuring change, and collecting sales taxes. Moreover, department stores and other companies now have plants and offices widely scattered throughout the country. A new set of bookkeepers and accountants, is needed at each branch. I know there are many managements supervisory, and junior or senior executive positions are bing filled by people who started as accountants because accountants have the knowledge of methods and finance and comprehension of the fundamentals of business, and acc...

    Read More

More about Actuary Essay

Open Document