Actuarial Science as a Profession (Importance)

By Direct Knowledge

Actuarial science is concerned with risk analysis and evaluation of possible risk mitigation strategies to cushion business from the risk associated with uncertainties in life. Actuarial science as a profession is useful in the assessment of risk. Insurance providers in the property, health, and casualty sectors need experienced actuaries to determine insurance policy costs concerning the risks associated with the policy to ensure that the insurance does not incur losses.  The following is a list of incentives that makes actuarial science an outstanding career.

An assured high starting salary, as well as the opportunity to grow one’s salary within a short duration, coupled with the fact that actuarial science is considered a prestigious career, means that actuary is perennially at the top of best jobs lists. Since an actuarial science career is considered among the best paying careers, for parents wishing to have their sons and daughters earn a high income, an actuarial career is a good choice to suggest.

The Impact of Actuarial Science as a Profession

Actuaries have an opportunity to impact the lives of other people by making a positive contribution to policy making and decision making processes. Imagine yourself affecting the lives of others by helping in the formulation of a sound health insurance policy targeting a marginalized population. Isn’t that great?  Unlike other professions, actuarial science job security is guaranteed during hard times since it is at these hard times that the services of an actuarial scientist are needed most. Hence, with the increased uncertainty of the future of the economies of nations and increased risk to individuals, it is essential for students to pursue a career that will guarantee them income and help in addressing the emerging challenges in the world. Actuarial Science offers one an opportunity to solve day to day human problems. Through articles and books, professionals learn the ins and outs of facing these challenges head on.

The benefits of being an actuary

Actuaries have an opportunity to utilize knowledge from more than one field in the decision-making process and in evaluating of risk thus making the work more interesting. It also gives learners an opportunity to incorporate knowledge from mathematics, computer science, statistics, financial and other related disciplines in predicting future outcomes and formulation of policy to help in mitigating possible risk associated with future uncertainties; hence, making the field more interesting.

High chances of career advancement are a significant benefit of becoming an actuary. Are you interested in having a job that will guarantee a substantial salary increase within a few years of your career life? Consider taking an actuarial career.

Are you interested in impacting positively on the life of other people? A career as an  actuary gives one the best opportunity to better the lives of society members. Professionals achieve this through the formulation of favorable policy intervention. Venturing into actuarial science provides the individual with a sense of fulfillment and motivates most actuaries to stay engaged.

An actuarial career offers  job flexibility and allows one to adjust one’s work schedule. This makes it possible for one to  work as a private consultant or as a full-time actuary practitioner. Thus, an actuarial career offers exciting opportunities for one to take charge of his/her job.

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The use of social media in actuarial science as a profession

Social media has become one of the essential tools of communication in the world today. Its use has influenced all aspects of our social life today. Digital spaces remain to be the world’s most successful globalization tool today. Social media use has enhanced networking between various professions and collaboration of knowledge from different experts.  Use of social media makes it possible for experts from different businesses to share knowledge. They can also offer technical assistance to their peers from different geographical locations. There has been a tremendous increase in the use of social media in the workplace.

Today, companies are advertising their jobs via social media links. There has been a rise of job seekers using a social media platform to secure job opportunities.  Embracing the use of social media in the field of actuarial science will enhance professional networking and boost professional growth. Social media has positively impacted the actuarial science discipline by making it possible for actuaries to find relevant information with a click of a button of numerous search engines and has made it easy for actuaries to get a notification about available job vacancies. However, it is essential for actuaries to factor privacy issues and hazards associated with the use of social media.

The benefits of having a social media site only for actuaries

Most actuaries use social media websites for advertising and showcasing their services. A recent study on social media sites revealed that most customers believe what they read on social media sites more than what they learn from the mainstream advertising platforms. We are therefore going to discuss the importance of having a social media advertising website below.

1.    It increases the awareness of the services you offer

Most of the service and product users admit that they discovered about their product in social media sites. Research conducted on the use of the products reviewed that most clients connect to the products that they already know. Therefore, the social media site is a critical tool that every actuary must have. Actuarial science as a profession can not exist without it.

2.    To humanize your brand and service

It is essential to show the human side of your services if you want people to trust your services. A recent study found that for people to believe in your brand and services, they must see that it is keeping its promises. Social media sites help the actuaries in doing this by providing a section where people who had used the services previously can share their experiences. Therefore, a social media site offers an avenue for companies to humanize their services.

Career Impacts

3.    Networking and Learning

Social Media benefits the actuarial profession by allowing candidates explore and take part in a variety of events organized by actuarial organizations. Social media has made networking possible and easier anywhere anytime. It has enabled actuaries to learn about a variety of tracks within the profession.

4.    Professional Development

Social media is home to an elite group of actuaries holding the most valued credentials and positions in the world. Becoming part of the Society unlocks a world of opportunities and professional development resources. It benefits the Actuarial profession by enabling members to actively impact crucial judgements regarding the future and direction of the actuarial profession.

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Trends in Actuarial Science as a Profession

There are always moving parts at play in actuarial science. Trends in the profession are leaning digital and global. When considering the largest changes in the world, no one can deny the influence of digital spaces. Companies run much of their operations online now. Because of this, actuarial science as a profession is also moving digital. Likewise, the global economy is more interconnected than ever. Business overseas is part of an everyday operation for most companies. If you reject the global working world, then you will get left behind. Therefore, digital and global trends are crucial to the profession. Let’s discuss a few of the key trends to consider.

Environmental Resourcefulness

If you are a company building new infrastructure, then the environment is on your mind. So, what does this have to do with actuaries? The risks involved in environmental resourcefulness are more prominent than ever. Further, it’s becoming more cost-effective to be more “green.” There are numerous states pushing reform in policy regarding resources. Many of these states are home to the world’s most productive businesses and corporations. Therefore, it’s important to keep an eye on the risk that comes with building and expanding.

Globalization has a lot to do with environmental resourcefulness. Firstly, there are a ton of countries without the means to be more environmentally conscious. It’s a privilege to have the money to invest in solar, wind, and nuclear energy. Because of this, it’s important for bountiful states to make the strides to do this. Actuaries can assist in defining what risks come with expanding and transitioning to green initiatives.

AI and Risk in the Profession

AI is posing a new sort of risk. At its core, AI is not bad. Therefore, it’s silly to assume AI will bring about some insane Matrix style overthrow of humanity. Yet, the real risks come in the financial breakdown of an AI failure. So, if AI should become a core element of a company’s production, what happens if it fails? Failure in digital spaces can occur in a number of ways. Cyberterrorism can target AI systems and shut companies down. Likewise, there are questions of the power with which AI computing centers. Things like natural disasters pose a risk to AI, if only in an indirect manner. For what it’s worth, the AI benefits outweigh these risks, but there are risks nonetheless. Actuarial science as a profession can adjust its efforts in digital spaces to deal with these possible issues.

The increased reliance on AI means more risks that are largely unexplored. There are now trends in the profession to follow in order to protect companies. Because of these unexplored territories, actuaries are actually more relevant than ever before. Digital and computer science professionals can focus on the hardware of AI. Leave the risk assessment and financial ramification analysis to actuaries.

Behavioral Trends

Consumers respond more to nuanced elements of identity than ever before. The increased emphasis on identity and representation is changing the way people purchase products. Even things like workout equipment and cleaning supplies involve identity now. When a company aims to reach a specific audience, they must also consider audiences they are not targeting. Digital spaces mean that missteps in marketing and product placement can lead to catastrophic press flubs. There are people on the internet who are always ready to point out poor marketing. Because of this actuarial professionals must now consider behavior a massive influencer in a company’s risk profile.

The economic impact of poor marketing is a drastic threat to companies and consumers. When a major organization loses its audience, this effects production and financials. That can lead to major drawbacks in things consumers need to live or survive. Because of this, social trends directly affect actual risk to companies. In a capitalist society, companies also affect consumers, meaning the balance is quite delicate.

Final Thoughts on the Importance of the Actuary

When considering actuarial science as a profession, there are many factors to its importance. That is to say, there are a lot of reasons to value the role of an actuary. Importance is often subjective, but not in this case. The reality is that risk is a part of our individual lives. In fact, individual risk management often dictates professional risk management. A company head concerned with health risks is often going to consider these things for their company. It’s important for actuaries to help dictate the present, real risks to curb paranoia.

It’s unlike any profession to be disposable. Given the fragile balance of risk and the working world’s stability, actuarial science is especially relevant. With a world growing increasingly global and digital, actuarial science helps evaluate real world risks. The number of emerging technologies being developed today is unprecedented. Many bring great tools to the world’s people to help improve the livelihood. Companies too can improve their business with these technologies. Because of this, the profession concerned with risks involved is equally crucial to the wellness of people and companies.

There is little separation between the threats of companies and individuals. Of course, financials are a bit contrasting; most companies deal with much more money than individuals. That being said, everyone involved in the world faces risks. Countering these risks with management techniques is crucial to the balance of our economic system. A system, which year after year, becomes increasingly global. Everyone on Earth is a potential victim of risks. Luckily, actuarial science is here to help identify and solve these problems.