How to become an Actuary in India? Aspirants can study Actuarial Science at UG, PG and MBA levels. Candidates can later join the Finance and Insurance Industry with salary ranging from INR 5,00,000 to INR 44,00,000.
How to Become an Actuary in India? Aspirants can register for ACET after completing 10+2 or take up Actuarial Sciences programmes at UG and PG levels. In addition, students can pursue an MBA in Actuarial Sciences to become an Actuary in India. Admissions to Actuarial Science courses are based on entrance exams and the merit of the applicant. The salary of an Actuary ranges from INR 5,00,000 to INR 44,00,000 PA, depending upon the position.
Who is An Actuary?
Actuaries are individuals in the finance industry who aid in devising policies in case of future uncertainties and mishappenings. Actuaries analyze various data and manage risks by forming the right solutions through policies. Other non-financial fields which require Actuaries are Insurance, Healthcare, and Banking, where risks are involved, and skilled professionals are required.
For example, an Actuary in an Insurance Company will analyse trends, data, facts, figures, and records and design an effective risk management policy to avert losses for the business.
How To Become An Actuary In India
Actuarial Sciences is developed for students who wish to pursue careers in the Finance and Insurance industry. To answer the question of How To Become An Actuary In India, aspirants can check out the steps below.
Step 1: Complete 10+2 Levels with PCM or Commerce with Mathematics.
Candidates must pursue take a combination of Physics, Chemistry and Mathematics or Commerce with Mathematics after Class 10. Moreover they need to score atleast 55% marks in their Class 12 to be eligible for admission at top colleges offering Actuarial Science. Without Mathematics and PCM subjects candidates will not meet the eligibility requirement needed to become an Actuary in India.
Step 2: Get a Degree in Actuarial Science.
In India, students who wish to become an Actuary must understand that it is not an easy path and must clear several exams to reach their end goal. Students can pursue Actuarial Science after 10+2 levels or complete graduation, take the relevant entrance exam and get their certifications later.
UG Level
Students can apply for Bachelor's degree in B.Sc Actuarial Science or Diploma. However, students must take ACET to get admission to colleges in Actuarial programmes.
B.Sc in Actuarial Sciences
The B.Sc in Actuarial Sciences is a great option for students wondering how to become an Actuary In India. All details, such as eligibility, duration, fees, colleges and salary after completion, are mentioned below.
- Eligibility: For B.Sc in Actuarial Sciences, candidates must complete 10+2 with PCM. Moreover, to apply for the top colleges, they must secure 50% and above and take the CUSAT exam.
- Duration: 3 Years.
- Colleges offering B.Sc in Actuarial Sciences: Amity University, Parul University.
- Programme Fee: INR 15,000 to INR 2,50,000.
- Salary Range: INR 4 to 7 Lac P.A.
Post-graduate Level
Students can opt for M.Sc in Actuarial Science or MBA in Actuarial Science. The eligibility requirement is a Bachelor's degree in Actuarial Science or a related course. Students must also take up entrances such as XAT, CAT or MAT.
M.Sc in Actuarial Science
Candidates wanting to know how to become an actuary in India after UG levels can pursue M.SC in Actuarial Science. Students will receive an attractive pay package after completing the course.
- Eligibility: For M.Sc in Actuarial Sciences, candidates must have their UG degree from a recognised University with at least 50%. B.Com or B.Sc graduates in Maths and Stats can apply for the programme. Moreover, candidates must take the CUET or ACET entrance test to apply for the top colleges.
- Duration: 2 Years.
- Colleges offering M.Sc in Actuarial Sciences: Kerala University, Amity University, Christ University, University of Madras.
- Programme Fee: INR 20,000 to INR 4,00,000.
- Salary Range: INR 5 to 10 Lac P.A.
MBA in Actuarial Science
Another option for candidates trying to figure out how to become an Actuary In India after graduation is to pursue an MBA. All details are mentioned below for interested candidates.
- Eligibility: For MBA in Actuarial Science, students must complete graduation with 55% or more from a known Institute with Maths, Computer Science, Physics and Commerce at Graduation in their UG levels. Additionally, aspirants must take entrance exams such as XAT, MAT, CAR and IBSAT.
- Duration: 2 Years.
- Colleges offering MBA in Actuarial Sciences: DAES College, University of Mumbai.
- Programme Fee: INR 80,000 to INR 4,50,000.
- Salary Range: INR 5 to 10 Lac P.A.
Also, Check: Actuarial Science Courses
Step 3: Get an ACET Certification.
Getting an ACET certification always acts as an extra boost to the candidate's biodata. However, if the aspirant has qualified in a minimum of three subjects from the International Actuaries Bodies then they can skip getting a certification from the The Institute of Actuaries of India.
Importantly, to get an ACET certification candidates need to pass all 15 papers of the IAI conducted exam. There are a total of 4 phases, which will be in written and practical formats.
| ACET Phases | Papers |
| Stage 1: Core Technical (Compulsory) | Financial Mathematics |
| Finance and Financial Reporting | |
| Probability and Mathematical Statistics | |
| Models | |
| General Insurance, Life and Health Contingencies | |
| Statistical Methods | |
| Business Economics | |
| Financial Economics | |
| Business Awareness Online Module (Practical Exam) | |
| Stage 2: Core Application (Compulsory) | Actuarial Risk Management |
| Model Documentation Analysis and Reporting (Practical Exam) | |
| Communication (Practical Exam) | |
| Stage 3: Specialist Technical (Any 2 Subject Out of 6) | Health and Care |
| Life Insurance | |
| Pension and other Employee Benefits | |
| Finance and Investment A | |
| Finance and Investment B | |
| General Insurance Reserving and Capital Modeling Specialist Technical | |
| General Insurance Pricing Specialist Technical |
|
| Enterprise Risk Management | |
| Stage 4: Specialist Application (Choose any 1) | Health and Care |
| Life Insurance | |
| General Insurance | |
| Pension and other Employee Benefits | |
| Finance | |
| Investment |
Read More on ACET 2023
Once candidates clear the first two stages, they will be at the Associate Level. After completion of all four stages and 3 years of work experience, they will be deemed 'Fellow'. However, candidates can begin applying for jobs after passing 5 papers in ACET.
Also, Check: Actuarial Science Exams
Skills Required to Become An Actuary
Aspirants of Actuarial Sciences must note that apart from knowing How To Become An Actuary In India, they must also understand the skills required in the industry.
- Advanced-level students with strong mathematical and statistical understanding will make excellent Actuaries.
- An in-depth knowledge of pricing, financial modelling, valuation, statistical and data analysis is required for an aspirant to become an Actuary.
- Additionally, candidates must have strong computer skills, experts with MS Excel.
- A strong understanding of economics, accounts, and finance is necessary to become an Actuarial.
What Does An Actuary Do?
The roles and responsibilities of an Actuary in India include,
Analyse Risks
Actuaries need to use their mathematical, statistical and financial skills to assess risks. Implementation of complex models to create reports, evaluate the current financial position of the company, and find solutions to reduce future losses.
Develop Financial Plans
Actuaries need to create financial plans for organizations to maximize profits and minimize risk. Retirement plans, Investment Strategies and Insurance Portfolios are some of the verticals an Actuary is responsible for in a Company.
Pricing Strategy
An Actuary in an Insurance Company helps in setting the price of insurance products, using their technical skills, data analysis, and quantitative models to evaluate risks attached to each policy. Besides, they also help in factoring the amount of premium to be paid for each Insurance product.
Types of Actuaries
After checking how to become an Actuary in India, interested candidates can review the different Actuary roles available once they are qualified. These job roles will vary from Senior executive to managerial levels and above for different industries and sectors.
- Finance Actuary: A Finance Actuary works in corporate finance in various teams like mergers and acquisitions.
- Life Insurance Actuary: The job role of a Life Insurance Actuary involves designing Insurance and Reinsurance policies to counteract the risks and generate ROI.
- Health Insurance Actuary: As a Health Insurance Actuary, aspirants will predict health insurance costs and devise policies after analysing risks in the sector.
- Pricing Actuary: Pricing Actuaries work in insurance and corporates to determine the prices of services or products. This is done after evaluating financial data and the risks attached to it.
- Pension Actuary: Candidates working as Pension Actuaries create pension plans after evaluating figures, risks, data and other relevant information.
- Property and Casualty Actuary: A job role commonly designated to Actuaries interested in devising policies against property loss or other losses due to natural or unnatural reasons.
- Valuation Actuary: A Valuation Actuary determines the values of company reserves.
- Forensic Actuary: Aspirants looking to join the field can find the role interesting as its purpose is to support insurance companies through litigation.
Average Salary of An Actuary in India 2023
The average salary of an Actuary for different sectors, specialisations and experience levels is mentioned below.
| Particulars | Salary |
| Sector-wise Annual Salary | |
| Government | INR 5.13 Lac |
| Private | INR 10.17 Lac |
| Specialisation-wise Annual Salary | |
| Actuarial Associate | INR 6.28 Lac |
| Actuarial Product Manager | INR 11.50 Lac |
| Analyst | INR 13 Lac |
| Financial Adviser | INR 6.30 Lac |
| Senior Executive Actuarial | INR 13.30 Lac |
| Consultant | INR 9.40 Lac |
| Experience-wise Annual Salary | |
| Mid or Above Level | INR 17 Lac |
| Entry Level | INR 4 Lac |
Read More: Salary of an Actuary in India 2023
Pros and Cons of a Career as an Actuary
Since aspirants now have a fair idea of how to become an Actuary in India, they can also check the Pros and Cons of a career as an Actuary listed below.
Pros:
- Options for Career Betterment: Once candidates have added enough experience to their portfolios, they can be Actuarial Specialists or Directors. Aspirants can even branch out as educators and consultants.
- Perform Tasks in Various Arenas: As an Actuary, candidates can take on roles as Analysts, Entrepreneurs, Professors and more.
- Specialisation Various Sectors: Candidates can specialize in their Actuarial practices in sectors like Insurance, Retirement Funds, Pensions, Marketing, Disability etc.
- Attractive Pay Packages: Once candidates have an established career, they can earn from INR 10 to 50 Lac on average.
Cons:
- High Educational Criteria: Actuaries need to secure advanced certifications and several degrees like masters and PhD to advance in their careers.
- Individual Work: Actuaries need to take on projects and complete tasks solo, as there is usually no team format in companies for Actuaries. Therefore, scope of collaboration is low.
- Full-time Desk Job: Candidates in an Actuarial role require to work with numbers, analytics and data in front of their systems every day, which might not be ideal work for everyone.
