Discussion on Actuarial science

Higher study options, courses on offer and job opportunities

Actuarial science deals mainly with calculation of insurance risks and premiums. It also deals with application of mathematical and economic analysis for decision-making in insurance investment; financial planning and management; and so on.

A few universities offer courses in actuarial science at the undergraduate and postgraduate levels.

Study facilities

The following universities offer courses with actuarial science or insurance as a subject at the degree level.

• Goa University, Goa-403 206

B.Sc. with actuarial science as a subject

• University of Mumbai, Mumbai-400 032

B.Sc. with actuarial science as a subject

• Kurukshetra University, Kurukshetra-136 119, Haryana

B.A. actuarial science

• University of Delhi, Delhi-110 007

B.A. with insurance as a subject and B.A. (vocational) with insurance economics and commerce as subjects

PG courses

Actuarial science courses at the postgraduate level are offered by only a few universities. Generally, meritorious graduates in mathematics or statistics or those who have studied actuarial science as main or optional subject at the degree level are eligible for admission. A strong base in mathematics or statistics is desirable.

• The Department of Statistics of the University of Madras offers M.Sc. actuarial science.
B.Sc. holders in statistics or mathematics are eligible for admission. Details can be had either from the web site www.unom.ac.in or from the Department of Statistics, University of Madras, Chepauk, Chennai-600 005.

• Bishop Heber College (Autonomous), Tiruchi-620 017 ( www.bhc.ac.in), offers M.Sc. and postgraduate diploma courses in actuarial science.

• The Amity School of Insurance and Actuarial Science, New Delhi-110 017, offers M.Sc. actuarial science. ( www.amity.edu)

• Narsee Monjee Institute of Management Studies (NMIMS University) conducts a one-year full-time postgraduate diploma course in actuarial science (PGDAS) ( www.nmims.edu).

List of more universities offering courses in actuarial science can be obtained from the University Hand Book published by the Association of Indian Universities, New Delhi, which is available for reference at the University Employment Information and Guidance Bureaus functioning under all universities.

Fellow membership

The Actuarial Society of India, Fort, Mumbai-400 001, conducts an examination leading to the fellow membership, which has been recognised as a professional qualification by the insurance industry. Those who have passed Plus-Two in any subject combination with a good base in mathematics can appear for the first stage entrance test that comprise two papers — mathematics and English. Each paper is of three hours’ duration. This entrance examination is held in May and November every year.

Chennai, Mumbai, Delhi, Hyderabad, Kanpur, Bhopal and Kolkata will be the examination centres.

After passing the entrance examination, one should apply for student membership and can take the examination leading to professional qualification as an Actuary. This examination covers subjects including probability and statistics; mathematics of finance; life contingencies; economics and accounts; applied statistics; mortality institutional investment; life assurance; and retirement benefits.

Only those who pass the first six subjects can become an associate member. Fellow membership will be awarded to those who pass all subjects. A fellow is recognised as an Actuary.
For details, visit www.actuariesindia.org or www.actuaries.org.uk or contact the Secretary (Education), Actuarial Society of India, 9, Jeevan Udyog, 3rd Floor 278, DN Road, Fort, Mumbai-400 001.

The Insurance Regulatory and Development Authority (IRDA) has made it mandatory for all insurance companies to appoint actuaries who should be a Fellow Member of the Actuarial Society of India.

Job prospects

Any qualified person with an aptitude in mathematics and statistics can become an actuary. Job avenues are in life and general insurance; operations research; statistics; investments and so on. Life Insurance Corporation of India (LIC) provides job opportunities for qualified actuaries as assistant administrative officers. Actuaries can also works as consultants.

An actuary’s skills can also be used in the fields such as pension; investment; project management; banking; healthcare; financial management; and corporate planning.

Insurance

Other insurance-related options can also be considered. One can become a professional in the insurance field after obtaining qualifications such as MBA (insurance); PG Diploma in Insurance Management; Master of Finance and Control (MFC); M.Com. (insurance management) and so on. Besides actuaries, insurance companies provide jobs for insurance surveyors; risk managers; claim adjusters; insurance consultants and so on.

MBA (insurance) is a two-year fulltime professional course, which provides specialised management skills in marketing; finance; information technology; and human resource management, besides the core subjects of insurance and risk management.

The main objective is to develop competence in management of insurance and risk with specific specialisation in organisation of insurance companies; underwriting; and risk management. Another objective of the programme is to prepare professional students to start as entry-level managers in the changing business environment and to provide them with exposure to technical, commercial and practical skills to be applied in the work environment. For obtaining admission to MBA (insurance) programme, one should be a graduate in any discipline, preferably in commerce; economics; actuarial science; mathematics and so on, with at least 50 per cent marks. Selection will be based on an entrance test, group discussion and interview.

The National Law University, Jodhpur ( www.nlujodhpur.ac.in), offers an MBA programme in insurance. Graduates in any subject, including law, with at least 55 per cent marks are eligible for admission. Selection is through a national-level entrance test and interview.

Some institutes and universities in the private sector offer the course.

• Amity School of Insurance and Actuarial Science, E-25, Defence Colony, New Delhi, ( www.amity.edu) and ICFAI University, Hyderabad, ( www.icfai.org) offer MBA (insurance) programme.

Meritorious graduates in any discipline are eligible for admission.

• Narsee Monjee Institute of Management Studies (NMIMS University), Mumbai-400056, offers an MBA course in actuarial science.

• The Institute of Insurance and Risk Management, Hyderabad- 500 033, offers PG diploma courses in general insurance, life insurance and risk management. ( www.iirmworld.org.in)
Graduates in any discipline are eligible for admission.

• The Department of Financial Studies, University of Delhi South Campus, New Delhi-110 021, offers Master of Finance and Control (MFC) programme.

Graduates in any discipline with at least 50 per cent marks are eligible for admission. Selection is through entrance test and interview. ( www.mfc.edu)