JOBS Essays - Insurance, Actuarial Science, Risk, Actuary

JOBS The world we live in is overflowing with choices and chances. Every day, each and every human must make thousands of decisions. Some decisions may be rather simple to make, or not present a high chance for an unfavorable outcome. While one may decide the apple they picked up from the store is not very sweet, the cost lost on the apple is rather minimal and the consumer will most likely be presented with many more opportunities to pick a delicious apple. However, some choices are much more complicated. Decisions such as where to invest ones money, or what physical challenges to endure, present very serious consequences. If the wrong decision is made, one could lose their financial security, or even their life. To minimize the chances of such disasters, humans engage in risk assessment. We calculate the chances of each choice resulting in an unfavorable outcome, rank the choices from lest to most likely to end in disaster and pick the top result. This process is performed countless times throughout ones life, but hardly ever consists of an actual mathematical equation. However, there are some who do quantify risk numerically. Actuaries use the ideas of probability and game theory to objectively assess the risk in a variety of chances. They may calculate the risk of ones house being flooded, or of one falling ill. They may calculate the risk of an investment losing money, or of a plane crashing. Actuaries implement the ideas of applied mathematics for those who cannot do so themselves, and eventually figure the means by which a client can minimize the risks facing them. Yes, actuaries do figure insurance rates, but they also do so much more. As I researched the field of actuarial science, I decided that actuary should be synonymous with mathematical risk manager, for actuaries are responsible for figuring risk, minimizing risk, and minimizing the impacts of disasters that have already occurred. They complete these tasks objectively and with the power of my favorite subject, mathematics. After hours of independently researching the field of Actuarial Science, I contacted Mr. Michael Miller. Mr. Miller is the Director of Insurance Pricing at Catlin Inc., a private insurance company in Atlanta, Georgia. With a Masters of Science in Mathematics and classification as a Fellow of Casualty Actuarial Society, Mr. Miller has thrived in the field of Actuarial Science for twenty years. He has even achieved the position of President of the Casualty Actuarial Society of the Southeast. These credentials drew me towards Mr. Miller, and I was thrilled when he allowed me to interview him. From a simple outline of the career path, to details concerning the traits that allow one to thrive in the field, Mr. Miller provided me, a potential actuary, with the information needed to fully understand the requirements and responsibilities of the field. I first asked Mr. Miller about his typical work day. What tasks did he perform? What responsibilities was he given? As a director, Mr. Miller replied that he oversees the work of actuaries below him to ensure that every worker is on task. He also spends much of his time in meetings, discussing what projects in which the company should pursue involvement. Unfortunately, Mr. Millers management position minimizes his technical work, so I researched the daily tasks of an entry level actuary as well. The daily activities of the typical entry-level actuary can be placed in one the following two categories: technical work or exam preparation. Entry-level actuaries are responsible for much of the technical work that Mr. Miller rarely performs. Mr. Miller listed some of these tasks, including modeling data in Excel, computing data, and creating presentations for data. However, he stated that such tasks were temporary, as many actuaries eventually work their way up to management positions. The means of achieving such status rely on the second category of entry-level actuarial work, exam preparation. To become an actuary, an individual must pass a series of licensing exams. Actuaries must pass a series of seven exams, which test ones knowledge of subjects such as probability, economics, and finance. The process can take from four to eight years, and take up much of a young actuarys time. Typically, a