• Life Insurance
• General Insurance
• Health Insurance
• Reinsurance Companies
• Pension Funds
• Consultants
• Investments
• Government
• Academics
• Risk Management

Life, General, Health Insurance & Reinsurance Companies

Traditionally Actuaries work with Life Insurance Companies, but their importance lies equally in General and Health Insurance Companies also.

The areas of their concern include:

• Product design, which includes designing new policies as per the changing requirements of the customers, Pricing the policy, ie. Setting the suitable premiums for the benefits and services offered by the company Profit Testing and distribution of profits among Shareholders and Policyholders.

• Actuaries help the management of the company in running the business in sound financial manner and to take strategic decisions from time to time.

• The Appointed Actuary of a Company has the responsibility of demonstrating financial stability of the company to the State Regulatory Authorities at all times.

Pension Funds

Their areas of concern include:

• Designing a Scheme of Benefits to the Members of the Pension Scheme, Calculating the Past Service Cost and the Future Service Cost of Benefits

• Certifying to the Regulator that the Fund Assets are sufficient to meet the liabilities and that the Assets are invested as per the Investment Pattern prescribed

• Calculating and Certifying the Pension cost on Acquisitions and Merger of Companies

Investment

• Quantifying the risk and the amount of investment returns available in the market

• Projecting the market expected investment returns using scientific methods and judgment to project the inflation rates, returns on the various market segments - manufacturing, technology, pharma, etc.

• Choosing an Investment Strategy which strike an appropriate balance between risk and returns

• Analyzing and identifying the Opportunities for increasing the returns

• Advising on the Investment Pattern to match the cash inflow and liability outgo for Insurance companies, pensions funds, banks, mutual funds, etc.

Consultants

• Consultants can act as Appointed Actuaries for General Insurance companies

• They also provide actuarial advice and their opinion on actuarial matters for Insurance Companies, Pension Funds, Government, etc.

• They provide investment advice to individuals that best suit their needs and family circumstances.

• They calculate the reversionary interests of members of Trusts.

Government

• Population projections

• Managing State Pension Schemes

• Identifying the regional differences based on geographical location, life style, income level, diseases prevalent, common occupation, etc.

• Regulatory role for Insurance Companies, Reinsurance Companies, Pension Funds

• Their role is increasing in designing Social Security Schemes, allocation of funds for development projects

Risk Management

• Fast Evolving field in recent days, for any massive project with lot of uncertainties.

• Identifying the various stages in the project while execution

• At each stage, identifying all the risk which may result in not meeting the expected outcome or estimated time

• Assigning a probability parameter to each of the identified risks

• Finding out a suitable measure to avoid or transfer those risks

• Processing the above-identified stages to various steps after allowing for the risk measures.