WITH talks of recession, global crisis and financial reconstruction currently dominating the social and business landscape, it doesn’t hurt to invest in a quantitative major that allows you to help make sense of the country’s economic future.

You can never go wrong with pursuing an Actuarial Science degree, as companies are always looking for people who can help them to stay financially viable in periods of instability. According to a recent survey by CareerCast.com, actuaries were ranked as having the best job for 2013 based on data from the Bureau of Labour Statistics and other US government agencies.

“Actuarial Science is an interdisciplinary field that incorporates the disciplines of finance, accounting, mathematics, computer science and economics,” explained Yvette Johns who lectures in the Mathematics Department at the University of West Indies, Mona campus.

“It involves the application of mathematical and statistical methods to the systematic observation of natural events to assess the risk of events occurring,” she said.

By assessing the risks, countries and organisations are placed in a better position to formulate policies that can either minimise or exploit these risks. Some of the risks these actuaries help to assess includes accidents, sickness, death, injuries and lost of property, which have not only financial implications, but also social and legal ramifications as well.

1. What does the study of Actuarial Science entail?

“The actuary is a financial architect or social mathematician due to his/her unique combination of quantitative analysis and business expertise to solve financial and social problems,” explained Johns. As such, a student who pursues study in this area will be taught how to develop the mathematical and statistical techniques needed to construct industrial and commercial processes against a financial and economic background.

“You should also be able to identify the risk factors and determine the price and cost of those risks. You should understand mathematical techniques, probabilities, distributions and other quantitative tools as well as the underlying business concepts and real-world applications,” the lecturer pointed out.

2.Why does the study of Actuarial Science make sense in today’s economy?

Based on their knowledge of finance, statistics and business, actuaries are used to design financial plans such insurance policies and pensions in a manner that ensures that they are economically viable. They are also needed to explain complex money related issues to company executives, government officials, stakeholders and the public in a simple way.

“Traditional (insurance-oriented) actuarial science focuses on the analysis of mortality, the production of life tables, and the application of compound interest. More recently, actuarial science has evolved to embrace more sophisticated mathematical modeling of finance,” Johns pointed out.

The lecturer believes the study of Actuarial Science makes sense in today’s economy because actuaries are concerned with real life problems. In a practical way, these individuals help to asses issues such as the impact of tax increases on the price of gasoline, the sustainability of government programmes such as the “free healthcare” system as well as the likely impact and the estimated cost of an hurricane.

3. What kind of job can you get with an Actuarial Science degree?

Actuaries are found in a wide cross section of departments and agencies because of the fact that money is at the basis of most, if not all, commercial and government enterprise.

They are essentially employed by insurance companies, consulting firms, employee benefit departments, banks and investment firms, hospitals and other businesses that need to constantly assess their risks.

“Actuaries may apply their skills in a variety of areas including strategic planning, environmental risk, demography, weather forecasting, life and health insurance, pricing analysis, risk analysis, pension valuation, operations research, asset and fund management, law firms, education, research and consulting,” said Johns.

4. Where can you pursue a degree or courses in Actuarial Science locally?

The University of the West Indies, Mona and the University of Technology.

5. What is the starting salary of an actuary?

According to vice-president of Actuarial, Risk Management Departments and Employee Benefits Administrator at Sagicor Life Jamaica, Willard Brown, the starting salary for an actuary is around $5 million.