Beruflich Dokumente
Kultur Dokumente
Akshatha B.G.*
Department of PG Studies and Research in Commerce
Kuvempu University
Abstract
This paper provides a platform to understand the role of actuaries in insurance sector. Actuaries
are acknowledged experts in the analysis and modeling of situations involving financial risk and
contingent events and concerned with both the asset and liability side of the balance sheet and
able to provide realistic solutions to complex problems with a long term forward look and
practical, innovative and numerate. An actuary applies analytical, statistical and mathematical
skills to financial and business problems, especially those which involve uncertain future events,
such as in life insurance, general insurance, risk management, health care financing, investment,
corporate finance, banking, pensions and social security. This helps individuals and businesses to
Actuaries perform actuarial analysis of expenses, score techniques, score plans, and plans
of insurance companies. These are experts who are experienced in examining and assessing
insurance functions, stocks and underwriting techniques and offer complex assistance regarding
Key Words: Actuary, Financial risk, General insurance, Life insurance, Risk management etc
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1.1 Introduction The actuary helps in designing
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1.2 Appointed Actuary in India A person who has not committed any
2. He may seek any information for the 1.4 Duties and Obligations of an Actuary
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5. Drawing the attention of 8. Informing the Authority in writing of
action is required to be taken by the (a) The insurer has contravened the
(a) That the rates are fair in respect (c) The directors of the insurer have
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1.5 Functions status. Life actuaries determine risk
Actuaries are responsible for performing 1.6 Role of Actuary in Life Insurance
based on different factors. Some of these The actuarial profession has its
factors include a person's age and health foundations in life insurance. Actuaries
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work in life insurance. Apart from their Development Act stipulate that every Life
traditional roles, actuaries can be found in Insurance and General Insurance Company
many other positions within life insurance, must have an Appointed Actuary. The role
enter into long-term assurance contracts and operation of any insurance company. In fact
they are faced with various uncertain factors role of Actuary is not confined to merely to
future levels of expenses and possibility of bonus but it extends to all facets of
calculates the premium or price for benefits as Product Design, Pricing, Investments and
offered under a Life Insurance Policy. He Asset Liability Modeling. The role of
also works out at the end of every year, the Actuary in a life insurance company is like
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Age reported even after the expiry of the
Generally the contract is for one year but of leave. The benefits again depend
every contract leads to claims which may be on uncertain events like mortality,
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longevity, withdrawal rates and 2. Employees Pension Scheme,
benefit to workers.
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1.8 Skills required for Actuaries 1.9 Typical work activities
Logical and clear thinking ensure excessive risks are not taken
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directors, and advising on risk conducting valuations of assets and
limitation; liabilities;
Specifically, actuaries in their day-to-day Actuaries may also be involved with the
work may be responsible for the following: acceptance of proposals for new policies,
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1.10 Conclusions which nevertheless must have a sound
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Reference
Books
1. Bodla, B.S. and Garg, M.C. (2004, 2nd Edition). Insurance: Fundamentals,
Environment and Procedures. New Delhi:Deep and Deep Publication Pvt. Ltd.
2. Kumar, K.B.S. (2006. Insurance: Non-life Insurance. The Icfai University Press
3. Mishra, K.C. and Mishra, R.C. (2009, 1st Edition,). Practical Approach to General
Websites:
www.actuariesindia.org
http://www.actuaries.org.uk
www.beanactuary.org
http://www.insuranceworkforce.com/blog/jobseekers/insurance-actuary/
http://www.actuaries.asn.au/library/events/Conventions/2011/ActuariesinGIPaper.
Awathy Varughese (n.d.). Citing websites; Its a new beginning for actuary
http://www.dnaindia.com/money/1600229/report-its-a-new-beginning-for-
actuary-aspirants
actuaries-insurance.html
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Ian Morris (June 27, 2012). Citing Websites. The Role of the Actuary in Insurance
the-actuary-in-insurance-in-guernsey/
Jagbir Sodhi (July 1, 2012). Citing Websites. An Indian summer for actuaries,
indian-summer-for-actuaries/
centre/archives/132-actuary-shortage-haunts-insurers
Shilpy Sinha (September 9, 2011). Citing Websites. IRDA to tighten criteria for
http://articles.economictimes.indiatimes.com /2011-09-
09/news/30135440_1_actuaries-general-insurance-future-generali-life-insurance
http://www.prospects.ac.uk/actuary_job_description.
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