Risk assesors: A glimpse into the future
Mumbai: Rising competition, market volatility and major corporate accounting scandals have opened the doors for actuarial graduates beyond the insurance sector. With more and more companies forming a beeline to hire students armed with the most recent knowledge of the market and products to secure their own future, actuaries is increasingly having an edge in the job market.
Shweta Dixit, chairperson MBA, Actuarial Science at NMIMS University, agrees. The demand for the actuarial science course is so high that the 30 seats on offer are filled up comfortably, every year. The demand-supply gap for actuaries also ensures placements for all passouts, although NMIMS provides a first-level course.
"Companies outside the insurance sector also have actuarial departments. That is why, we have companies like Larsen & Tuobro and consultancies like Ernst & Young hiring students with actuarial background," says Dixit. While the starting salary package for pure actuaries is Rs 8 lakh, for statistical analytics for beginners are hired at Rs 11 lakh.
An actuary deals with the financial impact of risk and uncertainties of the future, making them an essential part of the insurance industry. They help in evaluating various risks in life, health and pension plans over long periods of time. For instance, for products like annuities, they have to take a call on the rate of interest, say, 20 years down the line.
Accordingly, they advise insurers to invest on certain instruments to generate profitable returns. Similarly, these professionals use statistical tools for businesses and clients to minimise the cost of risk in the future.
Since the opening up of the insurance sector in 1999, the demand for actuaries has risen exponentially. At present, there are 47 insurance players - 23 in life and 24 in the general segment - while there are only 250 fully-qualified actuaries or fellow members, with only 200 based in India.