The Economics of Professions
Actuaries
How actuaries use statistics to price insurance and pensions, why the qualification is tough, and why actuaries are scarce and well-paid in India.
Actuaries measure risk.
Work
- Pricing insurance policies.
- Valuing pension liabilities.
- Advising on reserves.
Institute
The Institute of Actuaries of India regulates actuaries.
Tough exams
Actuarial exams take years, with low pass rates.
Scarcity
India has relatively few qualified actuaries.
Pay
Scarcity means actuaries earn high salaries.
Regulation
IRDAI requires insurers to have an appointed actuary.
The premium price
An actuary calculates health insurance premiums based on age and illness data.
Thinking insurance prices are guesses
Actuaries calculate them.
Key takeaways
- Actuaries price risk.
- The Institute of Actuaries regulates them.
- Exams take years.
- Scarcity keeps pay high.
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