Are you eligible for Actuarial Science?

As I defined in my previous article, Actuaries are professional that use their statistical and mathematical techniques to quantify uncertain events, risks. Actuaries domains include Valuations, Risk Management, Advisory, Designing (Pricing, reserving) of insurance products and much more. Actuary can work in insurance or non-insurance industry. Ability to make sense of data is our strongest point.

Actuarial Exams are one of the most difficult exams and very few people are able to complete all 15 exams. Before you decide to try your career in Actuaries, Do try to understand if you are eligible for it, officially and logically

Eligibility in Actuarial Science Profession can be defined from various angles. 

1.    OFFICIAL REQUIREMENT

Institute of Actuaries of India – Passed 10+2 and Clear Actuarial Common Entrance Test, held twice every year.

Institute and Faculty of Actuaries, UK

-          Score 80+ in Maths in 10+2

-          OR Graduation with 55% aggregate

-          OR Professional like CA, CFA etc

-          OR MBA in Finance

If you do not meet any of this criteria then still you can sit for CT1 as non-member from UK institute and on clearing CT1 you will get membership to write further Exams.

2.   Unofficial Requirement (My personal Views)

-          Should have taken Maths as a subject in 12th even if you are planning to write ACET, which can be officially attempted by anyone. If you did not take maths in 12th and still want to take up actuaries thinking that you were very good in maths till 10th and so you will be able to do it, then you are certainly wrong!

-          Should be at least 12th pass with again Maths as one of the subject to give CT1 as Non Member from UK institute. Some people misled students and make them write CT1 as non-member even before they clear 10+2 studies. This is total mis-selling and should stop immediately.

-          You should be ready to study, learn, and understand things. No way you can mug up and pass the exam. It require lot of efforts.

-          Should have time to dedicate to Actuarial Studies. Working candidates should learn effective time management

-          Should have Interest in Data/Number, Insurance, Finance, Risk and Capital Market.

You need lot of Patience and lot of Determination. This course will easily take around 6 years average. You should be willing to dedicate this much time. You will have to start working after you clear 3-5 papers. So you should be ready to study every day, even while you are working!

Do Share.

Also Read - How to Become an Actuary?

ACET Coaching

FUTURE TRACK has started with coaching session for upcoming ACET exam to be held in May/June 2016.

Schedule for the same can be noted from this link - Coaching Schedule

Coaching session in Classrooms will be conducted in Mumbai, Delhi and Jaipur. I will be teaching in Mumbai.

Syllabus for ACET might change for this coming exam and syllabus will be covered accordingly.

IAI has not yet announced Exam schedule for next ACET Exam.

Also Read - Difference Between Qualified Actuary and Partly Qualified Actuary

18th Global Conference Of Actuaries - Takeaways

It was very refreshing and enriching to attend 18th Global Conference of Actuaries(GCA), organised by Institute of Actuaries of India(IAI). The event was Attended by Officials of Actuarial Institutes of India, UK and others along with many fellows, Associates, Students and many other Delegates. IRDA cheif and its Chief Actuary were among prime speakers. IFoA president and Director were among the very happening people I met.

IFoA officials themselves hosted very enriching students event on both the days of Conference.

Various speakers presented papers on various topics including regulatory, corporate and economical changes. Topics discussed includes Life Insurance, Pensions, General Insurance and more importantly Analytics. I saw many people pitching analytics as very important feild for Actuaries in coming days.

I have been talking about this in my past. This is the only way out to solve the issue of lack of jobs. We need to get into fields which are called "Non Traditional". Analytics is FUTURE. No company will be able to survive the competition without it. This is right time we Actuaries make our space in the industry. We are apt people to understand this field better than anyone else. All students who are finding it difficult to get a job in " Actuarial" should go for "Analytics" as next best option. Insurance Industry has limited space to absorb each and everyone.

In an informal conversation with IAI president Rajesh Dalmia during dinner, He told me that experience in any profile which requires "QUANT" will be considered in "3 year mandatory Work Experience" required to become fellow.

Hope this will break the ice. Do Share.

Also read - Actuarial Jobs - Myths Busted

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Interview of FIAI Nikhil Gupta on Loksabha TV

Must Watch Video Interview of Mr Nikhil Gupta

Difference between being Partly Qualified Actuary and Qualified Actuary. Must Read.

It is a great misconception among students that you should start studying actuarial science and you get paid very well after clearing a few paper even if you don't complete the course. Yes, this is a great "misconception".

People start with actuarial science and I would say only 30%-40% (or may be even less) are determined to clear 15 papers and rest feel "Let's start writing exam. I have heard it’s impossible to clear 15 exams but I will get paid very well even if I clear 9-10 papers or even just CT series and stop then". This is not true in reality. 

Let me tell you the difference between what you think and what actually happens by explaining different cases of types of students.

This is how a “non-serious fresher”, rushing the profession these days, plan

• I hear about actuaries from my peers/seniors/family
• I google about it and only articles that I find says it is highest paid job and you need to be good at maths.
• I scored well in maths in 10th and 12th, let’s start doing actuaries. I have no intention to complete all 15 papers and I will get a good job soon on clearing around 4-5 papers.
• I start preparing for CT1 non-member/ACET
•  Pass CT1/ACET. I will clear CT2, CT7 and CT9 and pass it in first attempt as they are very easy. I will get a good job with this many papers.
• I will pass 4-5 more exams in 3-4 years and with full CT series my salary will escalate to Rs 20-30 lakhs per annum. 
• With experience I will get a new job in another company with even higher pay and my life is set. I will get lot of importance and huge salary in organisation as partly qualified actuary as its practically impossible to clear all 15 exam! My god, they are so tough!

What actually happens? #ReadCarefully

CASE 1 (Extremely non-serious)

·         I hear about actuaries from my peers/seniors/family

·         I google about it and only articles that I find says it is highest paid job and you need to be good at maths.

·         I scored well in maths in 10th and 12th, let’s start doing actuaries. I have no intention to complete all 15 papers and I will get a good job soon on clearing around 4-5 papers.

·         I start preparing for CT1 non-member/ACET

·         Pass CT1 in 2^nd or 3^rd attempt. Plan to give CT2, CT7, CT9 immediately.

·         Now I find out that these papers are not at all considered for jobs. #Tension

·         Start preparing for CT3 but then I see that few years back there was 0% result in CT3 in IAI exam. OMG, This is so tough, I am stuck! #FurtherTension

·         I Appear for CT3 multiple times, with no confidence, fail repeatedly

·         Drop Actuaries

·         Let’s Do CA/CFA/CS! #HappyEndingAtTheStartItself

CASE 2 (Intelligent but not determined enough to crack all 15 exams)

·         I hear about actuaries from my peers/seniors/family

·         I google about it and only articles that I find says it is highest paid job and you need to be good at maths.

·         I scored well in maths in 10th and 12th, let’s start doing actuaries. I have no intention to complete all 15 papers and I will get a good job soon on clearing around 4-5 papers.

·         I start preparing for CT1 non-member/ACET

·         I Pass. I take further advice and start preparation for other important subjects.

·         Appear for CT3, CT5, CT6 in net few attempts.

·         Start looking for a job. Get one. Wow! My salary is 35K p.m. and I am just 22 years now! Life is awesome! My hard work paid off! #HappiestSoFar

·         Start preparing for CT4. Gets demotivated, gives CT9 instead. Again start CT4 but then drop the plan to clear CT2 and CT7 first. By now salary is 50K p.m.

·         Start CT4 again, still not able to grasp. Have a look at CT8, find it even more terrible. #TooBadToStart

·         Now I feel a stage in my life has come where I am settled. I will get promotions based on my experience. I try but I am not able to cope up with exams due to time, determination, patience and confidence and seriousness constrains. #FeelingSafeAsOfNow

   This is the case with majority candidates. What happens with these candidates after this?

-          Company/Boss is pressurizing to pass more exams and at the same time giving more work.

-          No great salary hikes now as before.

-          No promotions as some junior cleared full CT and he is now pushed ahead of me. (You should know that in corporate life, Degrees and recognitions are most important factors.)

-          Demotivation seeps in.

-          Feels Stuck. No Satisfaction. Lot of pressure.  #HopeIwasDeterminedFromStart #LetMeSitForExamAgainAndTry

CASE 3 (Intelligent and Determined to Do it)

·         I hear about actuaries from my peers/seniors/family

·         I google about it and only articles that I find says it is highest paid job and you need to be good at maths.

·         I scored well in maths in 10th and 12^th. But let me research further. I find out its really difficult but my love for maths is infinite. I AM CONFIDENT THAT I WILL DO IT!

·         I Appears for ACET/CT1

·         Pass CT1. Takes Further guidance. Pass CT3, CT5, CT6. #Quick

·         Get a job within 4-5 months of good search.

·         Hardly anytime now with me along with my job but I am still very determined to DO IT anyhow given all the constraints.

·         I give up my weekends, evenings. #WorkingHard

·         I Clear CT Series in next 2 years.

·         Start CA1. Clears it. #Wow

·         Gets promotions and naturally I am placed on higher ranks then my colleagues who has 5 years more experience but hardly any papers. #BoostToDetermination

·         Picks up few ST papers. Clears it. #On7thSky

·         Clears SA series too. #Wow #ICanDoIt

·         By now I am 13-14 exams done and my age is around 30. Ohh God! The Journey was really long and now it’s just a matter of 1-2 more papers. My monthly salary is multiple lakhs by now but I am still craving for “Actuary” tag as still I am not getting that importance and happiness and of course salary that an Actuary begs. The one I had imagined before writing the first exam!

·         I push it hard. Clears all 15 exam in next few years.

·         Ah, I am an Actuary and suddenly everyone is looking at me with a very humble attitude, respect, grace etc. No one debates me, no one counters me as they feel no one can be more intelligent than me. And yes, it’s a common topic during lunch time of my juniors to discuss my salary and I love to keep it a secret. Haha. I am loving it!

What happens with you further?

Some Actuaries love India a lot and love to be here whatsoever and some get an offer letter from US or similar destination and fly immediately. I need not explain further how your life will be then. All this at the age of 30-32 or sometime even less if you start by the age of 20-21. Encouraging and rewarding enough but YOU NEED TO BE DETERMINED TO COMPLETE THE COURSE AND NOT LEAVE IT MIDWAY!

I hope you understood well how life turns around and plays with those students who enter the profession thinking its not important to clear all 15 papers and life will still be set. Yes, you might be earning well without completing all 15 but then comes a loop and career is stuck. There is a huge and amazing turn around in your life when you move on from 14^th paper to 15^th paper. It’s the 15^th exam that matters the most.

In very simple words,

Candidate with 15 papers = ACTUARY

Candidate with less then 15 papers = NOT AN ACTUARY

It’s very easy to enter this profession but very challenging to get through. There is no escape in between! If you enter, make sure you survive till the end!

Thank You for reading.

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