The actuary profession is prestigious in the USA and European countries. Such specialists are considered indispensable in various fields of business. In Russia, this profession is not particularly popular, but this does not prevent the organizations from actively using the services of actuaries in various fields of their activity. They are most demanded in the banking sector, insurance services, and also pension funds actively use their services.
Actuary is a certified specialist
Actuaries are specialists who have a higher economic or technical education, and also own the corresponding certificate of the actuary. In Russia, their activity is not one that needs to be licensed, therefore a certificate is issued on the basis of special examinations. This type of verification of values is far from all candidates. But according to their successful delivery, we can safely say that the actuaries are specialists of the highest standard. They are conducted by the state oversight body.
It can be said that actuaries are mathematicians who have certain skills necessary to calculate insurance risks. In addition, actuaries can make calculations that allow us to draw conclusions about the success of investing in certain assets.
An insurance company cannot do without such a specialist
An insurance actuary is a specialist who calculates insurance rates and insurance premiums. Probably, such specialists in the field of insurance services are most in demand, the cost of which is determined based on the calculations of the actuary. In addition to the fact that actuaries are such professional workers who calculate the necessary reserves of the insurer, they can evaluate the investment project, as well as other calculations related to voluntary or compulsory insurance.
Such specialists are indispensable for insurance companies. Since the actuary in insurance is an employee who must be highly qualified, the company treats them with special attention, since it is difficult to find a professional.
Also, according to the legislation of the Russian Federation, insurance companies must provide reports on their obligations to the body supervising their activities. Such reports are performed on the basis of calculations made by actuaries.
Insurance actuary is not a profession that you should choose if you do not know “perfectly” math and other exact sciences. The specifics of the work of such an employee lies precisely in the exact calculations that need to be performed every day. After all, an insurance actuary is a very responsible profession: due to incorrect calculation of insurance tariffs , such a company may simply be deprived of the right to engage in insurance activities.
When did this profession appear
The word "actuary" has Roman roots. This is the name in ancient Rome of a man who was engaged in the maintenance of protocols during a meeting of the Senate. But such a meaning of the word then became a thing of the past.
Actuarial activity in the modern sense of the functions, duties and tasks of actuaries appeared in Great Britain at the end of the 18th century. At that time, it simply became necessary to mathematically correctly substantiate the level of certain insurance amounts that characterize certain risks in life insurance.
In 1762, the first company appeared that conducted actuarial activities. Due to the great demand for such specialists, this market has grown and developed. In parallel with the growth of the market, there was an increasing need to create an organization that would bring together actuaries and control their work. This contributed to the emergence of the London Institute of Actuaries in 1848, as well as four years later, the Faculty of Actuaries in Edinburgh.
At the same time, already in 1895, similar societies of Belgium, Great Britain, Germany, France, as well as the United States of America created a common International Actuary Association, the main headquarters of which are located in Brussels. This organization holds meetings every four years. They discuss the pressing problems of actuarial activity, practice, structure and functioning.
What tasks are set for such specialists
The task of the actuary is to carry out calculations in order to calculate suitable tariffs for insurance services. Suitable tariffs are understood to mean the cost of the company’s services that will cover all the risks of its activities so that the level of solvency and financial stability is at the proper level, ensuring stability and timely settlement of obligations undertaken.
An actuary is such an employee who is able to provide answers to management personnel on all questions related to the cost of tariffs. For example, he should know the answer to the question of how the insurance premium will change if the deductible is increased to a certain level, as well as removing “damage due to other circumstances” from the list of insured risks. At the same time, he should have such a level of knowledge that will allow him to clearly re-calculate the tariffs for any services of the organization related to insurance activities.
How to become an actuary
First of all, you need to get the appropriate qualifications. Training on an actuary is expensive. A survey of employers abroad shows that their training costs are approximately £ 6,000 per year of study.
To become an actuary, the applicant must pass as many as 15 exams. In addition to paying for training, companies support employees with teaching aids and other materials that may be useful in mastering the profession.
In Russia, learning to actuary is difficult
On the territory of the Russian Federation, no educational institution is engaged in training for this particular specialty. Basically, a person who has a higher education and good knowledge of mathematics is hired. And then companies already independently conduct training and educate an actuarial specialist in it.
It is necessary to obtain a certificate from the Actuarial Society of Russia. Some pass exams of foreign guilds of actuaries, which allows you to confirm the level of their knowledge and successfully get a job in an insurance company or bank.
Self-regulatory organizations of actuaries (SRO actuaries)
In order to monitor the activities of these specialists, non-profit organizations are created that supervise their work and can also regulate relationships in the actuarial services market. In other words, the self-regulatory organizations of actuaries created as workers' associations monitor the activities of such specialists.
Any such specialist must be a member of such an organization to carry out his professional activities.
What are the functions of SRO actuaries?
The following main functions can be distinguished:
- Development, approval and implementation of standards and rules that actuaries should be guided by, carrying out professional activities.
- Establishment of requirements and conditions for the adoption of new members, membership fees, fines.
- Protection of interests, as well as the rights of members of the organization before state authorities, courts and other proceedings.
- Exercise of control over the professional activities of members of the organization, their compliance with all norms and procedures provided by law.
- Providing full informative support for members.
What requirements should an SRO comply with?
The activities of actuaries in Russia are accompanied by an incompletely developed system of regulatory documents. That is why now at the consideration of the State Duma of the Russian Federation they are considering a bill that will regulate the activities of actuaries. This regulatory document implies that a self-regulatory organization of actuaries must comply with the following requirements:
- The organization has at least 100 individuals who meet all the requirements established by law.
- A compensation fund should be created for claims against customers. Such a fund is formed solely from cash. Moreover, all members of the organization must make a mandatory contribution to it. The minimum contribution must be equal to 30,000 rubles. The maximum amount of payment for claims of customers from the compensation fund should be no more than 600,000 rubles.
- Such an organization should have a clear structure, units, as well as a collegial governing body. The governing body may be the supervisory board.
- The organization must apply those actuarial activity standards that are consistent and not contrary to the laws of the Russian Federation.
Being a specialist and being able to calculate the cost of certain risks is a difficult profession. The actuary must have good knowledge in the exact sciences and be able to solve complex problems associated with a large number of unknowns.