About Actuarial Scientists
An actuary scientist is a person who researches and manages risk. In 2001, this career was ranked the second best job in the United States.
Other People Are Reading
-
Identification
-
An actuary scientist researches and analyzes data that helps companies determine and manage risks. An actuary scientist must possess strong analytical skills and business knowledge and possess a strong understanding of human behavior. Many actuary scientists work in the insurance industry, compiling and analyzing data that aid the insurance companies in determining premiums. Government programs, such as Social Security and Medicare, use actuarial scientists to analyze trends such as life expectancy and health statistics in order to minimize the risk for these programs.
History
-
As long as there has been life, there has been risk. Each time a caveman wandered away from camp in search of food, there was a risk that he would not return. As the world became more populated and people turned to commerce as a means of survival, risks increased. Shipowners often risked everything they possessed, as well as their lives, on a successful voyage.
As the world of commerce grew, enterprising individuals began to help business owners reduce their risks by providing insurance. In exchange for a monthly, quarterly or yearly premium, insurance companies reimbursed business owners for losses encountered.
Eventually, insurance companies began to insure homes, lives and vehicles as well as businesses. However, providing this insurance came with its own risks. As with any business, in order for an insurance company to survive, it must take in more than it pays out. Insurance companies began to use actuarial scientists to compile and evaluate information that would help them determine how much in future premiums the company would need so it could cover the projected payouts for that period. -
Function
-
The function of an actuarial scientist in the business world is to help companies--both private and government entities--determine and manage risk. There are many things that can have an effect on business, some that are out of a person's control, including such natural disasters as earthquakes and hurricanes. There are also things that are within the control of the company, such as relocating and expanding. The actuarial scientist collects analyzes the data as well as human emotion in order to put a price tag on risk.
Benefits
-
The benefits of seeking a career as an actuarial scientist are many. This career choice allows you the option of working for a government entity, a private company or for yourself. The demand for actuarial scientists is high and continues to grow, which means that the options available for an actuarial scientist are many. In 2001, a person with a bachelor's degree in actuary science could expect a beginning salary of around $46,000.
Significance
-
Actuarial scientists play an important role in the financial world, both on a private and government level. Risk management is a key ingredient to a long-lasting and successful business. It is also the key to keeping programs, such as Social Security and Medicare, available. The information provided by actuarial scientists to governments and private companies allows these companies to prepare for future needs by adjusting the actions of today.
-
