Saturday, August 10, 2013
Should You Study Actuarial Science?
If you are in two minds about studying actuarial science in college, or if you are not certain about continuing pursuing this profession, this blog is for you! You will learn who should study actuarial science, why should you study it, how to study it, and where to study it. First and foremost, I will start out by giving you an introduction to actuarial science.
What is Actuarial Science?
One Crucial Point!
Studying actuarial science cannot make you an actuary, only passing all actuarial professional exams does. Actuarial science is just a course in college to prepare you to sit for all the professional paper.
As you explore this page, you will learn about who should study actuarial science and know whether you are suitable for this course. Generally, a person who has the following characteristics is ideal for this course.
1. Likes Number
Actuarial Science is a very comprehensive course in the way that it covers Mathematics, Finance, Economics, Accounting, Business Models, Computer Programming and Risk Management. As such, a high aptitude in Mathematics is highly required. To start up the course, you will first need to learn Calculus, Statistics, Probability, and Financial Mathematics at the early stage. Then you will need this fundamental Mathematical knowledge to solve complex actuarial problems. So if you do not like numbers or are not number sensitive, this course is definitely not for you.
2. Likes Programming
Being an actuary requires you to
master several in-depth computer programming languages. This includes, but not limited to, Microsoft Excel, Microsoft Visual Basic, Microsoft Visual FoxPro, and most importantly, Prophet – an actuarial software designed to crunch a large database. You may have no idea about this software yet because you are not yet taught in college. This is normal. So don’t panic. You did not know how to walk when you were born, did you? The important thing is to have the desire to learn, then you will master it at your fingertips in no time. However, if you find yourself do not enjoy learning programming languages or writing codes, please spend your time studying other course.
3. Likes to Solve Complex Problems
Actuaries are experts who solve complex problems. There are many factors impacting an actuarial solution that even one assumption is inaccurate, it would affect the whole solution and result. Consequently, actuaries employ the actuarial control cycle – a problem-solving approach that applies equally well to the most broad and the focused actuarial problems. It is a model of actuarial practice in a wide range of fields and provides common grounding for all candidates. Through the control cycle, all actuarial work is categorized into three main functions: 1) Define the problem, 2) Design the solution, 3) Monitor the results. As a reward to this highly sought-after problem-solving skill, actuaries are paid extremely well. In fact, it is one of the highest paid professions. So if you like solving complex problems and taking challenges, the actuarial career can be your bread and butter.