How to become an Actuarial Analyst

Overview, Courses, Exam, Colleges, Pathways, Salary

Finance and Accounts


Who is Actuarial Analyst ?

Actuarial Analysts are skilled at quantifying risks using their knowledge of statistical modelling. They assist their employers to analyze and manage financial risks in order to ensure the financial stability and growth of the company. They produce long-term financial projections by conducting cost-benefit analyses and calculating the probability of certain unfavourable events including accidents, property damage, product failure. Upon presenting the insights from their analyses to the employers, they recommend risk management strategies to reduce risk exposure. Actuarial Analysts are essential for organizations to utilize the large amounts of consumer data collected to understand and predict consumer behaviour, guide the development of new product/service by forecasting its demand, evaluate pricing strategies, as well as accommodate for the changes in the industry.

An Actuarial Analyst allows the companies to foresee their financial future in terms of risks and costs, to guide their current strategies, thereby contributing to the company`s economic returns. Data is used by these professionals to assess risk for organisations ranging from financial service providers to insurance companies. They use statistical models to analyse data and calculate the probability and associated costs of events such as product failure, accidents, property damage, or even death. They use these findings to draught and determine the cost of life insurance policies. Furthermore, some of them estimate catastrophic events such as earthquakes, floods, or similar calamities while also measuring the risk situation of these insurance providers. They are typically hired by the insurance industry and specialise in various areas, such as life and health insurance. They typically collaborate with underwriters and market research analysts to ensure the smooth operation of insurance companies or other financial institutions.

Typical day at work

What does Actuarial Analyst do?

An Actuarial Analyst shall be typically tasked with the following duties:

  • Research, compile and analyze data for risk evaluation
  • Evaluate the reliability and utility of the data source to ensure the accuracy of the data being used
  • Build statistical models to generate and examine financial predictions, infer trends and patterns
  • Estimate the probability of risks and their associated economic costs 
  • Provide recommendations to mitigate identified risks and decrease the possibility of risk exposure
  • Conduct analyses to determine the cost-benefit ratio of new products/policies being developed by the company, produce future projection and assist in the pricing strategies of the same
  • Produce detailed reports of statistical computations and analysis findings
  • Communicate with the upper executives to determine the financial goals and expectations as well as to educate them about the insights gathered from the future projections

Abilities and Aptitude needed

What are the skills, abilities & aptitude needed to become Actuarial Analyst?

For an Actuarial Analyst, numerical and technical aptitude is an undisputable requisite to efficiently produce financial forecasts and assess risks. Their ability to carry out complex calculations and statistical analysis shall be necessary to handle the large amount of data assessment which is at the core of this job. In order to supplement their numerical skills, an Actuarial Analyst should be meticulously organized and attentive to detail. They should be able to combine the insights gathered from the data with their business knowledge to determine solutions that are in the best interest of their employers.

Further, they are also required to collaborate with other professionals and effectively communicate and present their insights to those from a differing background which necessitate impeccable communication skills. Being skilled at written correspondence is essential as they need to document summaries and statistical reports. Additionally, extensive familiarity with specialised computer software for data analyses and statistical modelling is needed to excel in this career. High-level decision-making skills are of utmost importance since their professional judgment is instrumental in making critical business decisions. A persevering, goal-oriented individual with a knack for applying mathematical concepts to business decisions is the best fit for this job. The life of an actuarial analyst is not for everyone; it requires a very specific set of skills. Fortunately, many of these abilities are learned rather than innate, and they can be honed with determination and hard work.

These are the necessary skills:

  • Calculus, statistics, and probability are examples of specialised math knowledge.
  • Analytical, project management, and problem-solving abilities are required.
  • Accounting, finance, and economics
  • Communication between people
  • Simple coding, spreadsheet creation, statistical analysis programmes, database manipulation, and programming languages are all examples of computer skills.

An actuarial analyst must be self-motivated, creative, independent and collaborative at times, and ambitious. Understanding the common industries in which actuarial analysts work, such as insurance, banking, and government, can also help you stand out as a candidate in the field.


Salary for Actuarial Analyst?

The salary for an Actuarial Analyst in India can vary based on factors such as experience, qualifications, the size of the employer, and the city of employment.
Minimum Monthly Salary: The monthly salary can be from INR 25,000 to INR 35,000.
Maximum Monthly Salary: The monthly salary can be from INR 70,000 to INR 1,00,000 or more.
Annual Salary: The annual salary can be from INR 3,00,000 to INR 12,00,000 or more.
Highest Paying Job and Scope: The highest paying job for actuarial professionals in India is often the role of a Chief Actuary. Chief Actuaries hold top-level executive positions in insurance companies and financial institutions, and they are responsible for overseeing the actuarial function and managing the organization's overall risk profile. 

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How to become an Actuarial Analyst?

Entrance Exam

Entrance Exam for Actuarial Analyst ?

Aspirants who want to become members of the Institute of Actuaries Of India (IAI) must first take the Actuarial Common Entrance Test (ACET). The test is divided into 2 parts. The first part includes Mathematics, Statistics and Data Interpretation. And the second part includes English and Logic. 
As Actuarial science is a Professional course, there are various exams and stages to be cleared. There are 15 papers divided into 4 stages. 
Stage 1: Core Technical (CT)
Stage 2: Core Application (CA)
Stage 3: Specialist Technical (ST)
Stage 4: Specialist Application (SA)
As there is no timeframe to the course, aspirants can complete it at their own pace. Once all 4 stages are cleared an aspirant can easily fetch a job in the field. 


Which course I can pursue?


Which Industries are open for Actuarial Analyst?

  • Financial services industry
  • Professional & Business Services
  • Private Agencies/ MNCs
  • Agencies & Consultancies 
  • Manufacturing Industry
  • Corporate Office
  • Health care industry
  • Education industry/ Sector


Are there internships available for Actuarial Analyst?

Take the opportunity to work under a professional that gives you  exposure to the industry. It will allow you to have a practical learning about the field and will also give you contacts for future reference. 

Career outlook

What does the future look like for Actuarial Analyst?

While Actuarial Analysts can work in a variety of industries, they are most frequently employed by insurance companies, particularly in the life insurance and pensions sections. Other employment opportunities can be found in investment firms, consulting firms, hospitals, banks, and the government sector. The demand for this job is expected to grow at a rapid pace as their services are needed for companies to secure their financial health as well as guide financial decisions for business growth. It is primarily an office-based job with regular 9 to 5 working hours. However, one shall be expected to work overtime occasionally depending upon the project.

With experience and further professional qualifications, it is possible for them to advance to the position of senior actuarial analyst, actuarial manager, or work as a consultant for hire. They generally work under minimal supervision, often independently. As regulations change and the markets expand with the addition of newer customers and products, the work of Actuarial Analysts shall be required by companies to accommodate for such changes to generate accurate projections of costs and risks. Actuaries` employment is expected to grow 24 percent between 2020 and 2030, much faster than the average for all occupations. On average, 2,400 actuarial job openings are expected each year over the next decade. Many of those openings are expected to be created as a result of the need to replace workers who transfer to different occupations or leave the labour force for other reasons, such as retirement.