 |
Financial uncertainties or risks come in many forms. It's the job of an actuary, using mathematics, statistics, modelling techniques and probability theories, to put a value on these risks for businesses.
''Actuaries help companies design products that will withstand economic shocks or financial uncertainties, such as changes in interest rates or the stock market,'' says former Professor of Actuarial Studies at Macquarie University, John Pollard.
Determining Financial Outcomes And Risks
An actuary working in life insurance, for example, calculates how much the insurance company will have to pay out in the future, and whether or not they will have the money required to do so. This enables them to evaluate how much an insurance company's products should cost if they are to be profitable.
Knowing Where Your Money Goes
In general insurance, actuaries undertake similar calculations for products such as home, contents and car insurance. When an employer sets up their own superannuation scheme, they will often need to call upon the skills of an actuary. An actuary will look at how much money the employer has, then design a scheme that uses that money most effectively.
Looking at the design of existing superannuation funds, and providing advice to superannuation companies are other roles. Many actuaries advise on investments by evaluating risk versus return on investments. They recommend whether institutions such as universities, health funds and super funds and local governments should look at long or short term investment, and which investment manager best suits their needs.
An Expanding Role
''The financial services and technology revolution is affecting the work of actuaries. Once, actuaries worked largely in life insurance and superannuation, but they are now shifting into expanding areas such as health and general insurance,'' says David Knox.
Typically, an office is the working environment for actuaries, who use computers to assist with financial, mathematical and statistical modelling. Some actuaries are fairly mobile and spend much of their time out of the office, meeting with their clients.
''Actuaries need to have strong skills in maths, statistics and financial methods to assess future financial uncertainties'' says Professor Pollard.
Strong communication skills are also required as, no matter which area an actuary works in, writing reports, summarising findings and presenting them to senior management are key tasks. It's having to draw upon both her mathematical and communication skills that Catherine Nance, Actuary and Director, Financial Advisory Services, PricewaterhouseCoopers, enjoys.
''The occupation is typically viewed as being a technical one, but it's very up-front on the communications side. You'll find yourself dealing with clients ranging from the boards of large companies, through to people working on shop floors or mine sites. You have to be able to explain complex financial situations to people with various backgrounds, in a way that they will understand.''
While there are only a very small number of people employed as actuaries in Western Australia, and the turnover rate tends to be low, employment opportunities may expand due to the diversification of areas in which actuaries work.
Catherine Nance says if you have the characteristics of a good actuary, then your skills will be highly valued, not only by Western Australian companies, but those interstate also. She says, however, that most employment opportunities currently exist interstate.
The actuarial degree can also be a springboard to a number of areas. This may require the completion of further courses in order to acquire the additional skills needed.
For more information regarding an actuary's salary in WA, have a look at the Australian Government Workplace Authority website below.
|
