Different types of Actuaries

Different types of Actuaries

Whenever we hear the word actuary, it rings a bell of insurance in our minds, but actuaries are not
limited to insurance only.

‘Where there is risk, there you need an ACTUARY’

In this article, we will take a look at the different types of actuaries that are there, based on the field of
their work. Without any further delay, let’s get into them. The broad classification of actuaries can be
presented as follows:

  • Insurance Actuaries
    – Life Insurance
    – Health Insurance
    – General Insurance
  • Pension Actuaries
  • Finance & Investment Actuaries
  • Risk Actuaries
  • Resource & Environment Actuaries

Firstly, and the most common ones are the insurance actuaries. Insurance actuaries are separated into the wide categories of life insurance, health insurance and general insurance.

Life insurance is a traditional field in which actuaries work. Life actuaries are basically the ones who can
predict when a person could die, using various models and factors, like the person’s eating habits,
smoker or non-smoker, exercise habits, and others. This comes in handy for the insurance companies
selling life insurance policies, as they have to determine the premiums to be charged from the potential
policy buyer.

Healthcare is a growing field for actuaries right now. With faster innovations in the field of healthcare,
actuaries are needed more in this field. Here actuaries work with other health professionals to find
solutions for medical insurance, critical illness, and long-term care insurance.

General insurance actuaries are those who work in the non-life insurance fields. They cover wide areas,
including house insurance, fire insurance, car insurance, and others that are under the general category.
Another type of actuary is a Pension actuary. Pension actuaries work with specialists in the field of
pensions to help in forming different pension schemes in order to meet the needs of various scheme
members.

Finance and investment actuaries are those who work with bonds, equities, real estate and other
investments. Their work primarily involves the analysis of the stock market movements, and they are
always aiming at maximizing the returns of the investors.

Risk actuaries are risk managers. Actuarial work in this field is usually focused on Enterprise Risk
Management (ERM). ERM focuses on businesses taking risks to make a profit for their owners. An ERM
process makes use of risk information and processes it into management decision making and more.

A lesser known type of actuary is the Resource & Environment actuary. The Resource and Environment
practice area aims to help in the development of suitable responses for different environmental needs.
In addition to considering the impact of environmental change on existing work, The Resource and
Environment actuaries work closely with all other practice areas in responding to global environmental
issues.

Arriving at a conclusion, we can see that actuaries are not limited to the field of insurance only, but they
are also engaged in work of other practice areas.

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