An actuarial is a specialist company professional that deals with financial underwriting and the measurement and control of uncertainty and risk. The official title of the related field is actuarial science. Basically, these risks involve both the financial and non-financial sides of an organization and need asset, liability, valuation, and safety management skills.
Most people think that actuaries are people who calculate risk by means of mathematical equations. However, actuaries may also use formulas, computer programs, statistical data, and other forms of analysis in order to arrive at estimates of financial risk. Actuaries are involved in the evaluation and approval of business insurance plans, employee benefit plans, group health plans, investment proposals, and insurance disputes. In addition, they make application, review, and approval decisions for Medicare and Medicaid plans and also act as consultants for those companies. Actuaries may also work as independent contractors for third-party healthcare providers.
The job description of an actuarial expert includes estimating and providing statements or reports on potential risks and uncertainties that an organization may experience. For instance, if a manufacturer produces a new product, the actuaries must analyze the characteristics of this new product and the marketplace demand for it. They must come up with a rating that will compare the product against similar products in the market. At the same time, actuaries must evaluate the performance of specific services or products and provide reports on these services or products to management.
In order to become certified professionals, they must pass four steps. First, actuaries must complete a degree program. Second, they must pass the necessary exams for licensure. Finally, they must complete an approved internship program to fulfill the requirements for licensure.
Since many actuaries work directly for insurance companies or work as independent contractors, some work in the government. An example of an actuarial position in the government would be an assistant acting under the Act in Health and Human Services. In addition, there are many agencies, departments and offices that act as an intermediary between insurance companies and health care providers. To become eligible for a government actuarial job, an individual must pass the exams required by these agencies.
Becoming certified professionals requires that an actuary to develop certain skills. For example, actuaries must pass the exams required by their state and obtain licenses. Furthermore, they must become financially stable, since the prices of healthcare services can vary from state to state. Lastly, they have to work in an environment where they can meet other professionals such as physicians, nurses, and administrative staff and act as intermediaries between them and the client. In order to master the art of actuarial economics, students have to pursue graduate degrees or else specialize in actuarial research.