What is an actuary? What does an actuary do?
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- čas přidán 13. 07. 2024
- Hey! Brea here.
Today's video is going in-depth and explaining to you exactly what an actuary is, and what they do.
Actuaries use a lot of data, probability and statistics, but how do they actually put a value on risk? Well, I explain that briefly in this video using an auto insurance policy as an example.
I talk about premiums, risk, probabilities, interest, actuarial exams, education and lots more!
For more info about what an actuary is and what they do, check out this page on my blog: etchedactuarial.com/what-is-a...
And, if you want to know more about actuarial exams this would be the best post to read: etchedactuarial.com/how-actua...
Actuary day-in-the-life video: • Actuary Day in the Lif...
Enjoy!
Brea
I took a bunch of career surveys and this kept showing up at the top of my lists. I’m still trying to figure out what it is I want to do so thank you for clarifying what an actuary actually is.
You're welcome! Hope this gave you some insight into the field. Be sure to check out the other videos to learn more! Here's a good one to watch before deciding whether becoming an actuary is right for you czcams.com/video/AC_4aax8oFA/video.html
I've started watching your videos yesterday and I can't even believe how much I've learned. Thanks so much for clearing these things up! Also I can't imagine a video when you're not smiling the whole time :)
I actually have had to find out what an actuary does for a script, so thanks so much for these!
Yo, love the video. I will definitely be watching more considering I'm about to be studying for my first exam and kind of feeling lost at the moment.
Glad to hear that! Good luck :)
That was a good description. As far as what an actuary does, maybe you could make a video talking about some of the tools and software that modern actuaries use such as R, Excel, VBA, SQL, SAS, Python, etc.
Good idea! I'll add that to my list of possible video ideas. I do have this post that talks about programming if you're interested. etchedactuarial.com/programming-actuaries/
well explained ...thanks
please keep up the good work. love your channel
Thanks Reza! Glad you're liking the channel :)
Thanks for info!
Nice, very clear and helpful
You deserve 1M subscribers !!
I learned everything I needed to know, thank you. Was a bit confused because I do like math and statistics but the betting part doesn't appeal to me. Will look into data science instead.
When i learned about this career i have been doing very surface level versions of this math in my free time for fun, just with time and money maintain with games, doing interest, reinvestment values and such. This video has helped me a lot reaffirm my interest in this career as i am looking to start college than you much for this ❤️
I'm so glad this video helped you! :) Wishing you luck with your actuarial journey!
Very insightful.
You'll soon be influencing a lot more people Brea. Keep it up :)
Thanks Hasan :)
Those freckles are so cute.
Thanks for the info.
You would've also been a great teacher! You explained everything so well! Thank you!
Glad to hear that! :)
I am struggling to pass Japanese actuary exams. Your movies are very motivated for me ! Thanks !
I'm so happy I could help! Good luck with your exams! :)
Can you make video about how insurance companies come up with the market premium for a standardized product? It can be for any product. I just want to understand how to get out of the actuarial equivalence principle where the premium is calculated equating the actuarial present value of future premium payments and the actuarial present value of future liabilities. As an insurance company, it's obvious that I can't charge the expected value of future liabilities due to the fact that I have to be prepared to overcome deviations from the expected value in order to fulfill my obligations with the policyholders without going bankrupt.
Hi! My mom was the one to tell me about actuarial sciences so i wanted to see if its an intersting career. Ive heards it pays alot and its easy to get a job in most countries in the world with this profession, now i dont know to what extent this is true. But i feel like this is an interesting career so im doing research on it ! Great video its pretty insightful
Thank you! You might also find this video helpful if you're still deciding whether this career is right for you czcams.com/video/AC_4aax8oFA/video.html
My daughter is thinking of becoming an actuary,... hopefully this video help her
I hope so too! If she has any questions, she can certainly contact me and I'd be happy to answer. Support@etchedactuarial.com
Away from "What is an actuary?", i have to say that i couldn't stop looking to your beautiful eyes . Great job, keep it up
Well explained!
Thanks!
I just learned about this field today & am adding it to my 'list of possibilities' :) I have a B.F.A. and have been in game dev for around 6 years, but I'm quite burnt out and shopping around for a career change. If I was to pursue a career as an Actuary, do you recommend going back to school for a second Bachelor's or are the exams/the skillset the main thing employers focus on? I'm just gathering general info at this stage.
Generally the exams and other skills/experience are what employers look for. It's probably not necessary to go back for a second Bachelor's degree. One will be good enough! Hope you've been able to narrow down your options and decide on one. :)
Very good presentation hon. Are you studying to be an actuary? Have you taken your exams? Good luck❤️🙏💐
I have always loved math in school but i never really knew what i could do with it other than being a teacher or a mathematician. This is a interesting course that i could go down.
Or u can go in financial advisor or a financial analyst
You are great...great...just great!!! Currently I'm studying for my exams for next year April, (CM1 and CM2 from IFoA).
When I start losing hope or feel discouraged, I just watch one of your videos, it doesn't matter which one and it just fires me up!!!
Thank you :)
Love to hear this!! Keep up the good work :)
Hi Brea, your vdo is very helpful, but wondering if it is too late to start the exam in early 30s ? esp for those have finance and economic background
No it's not too late! Many people start their actuarial journey at a later age. If you have experience that is somewhat related to actuarial work then that would be very beneficial. This post goes into a bit more detail about becoming an actuary in your 30s. etchedactuarial.com/becoming-an-actuary-at-30-40-or-50/
I first heard about an actuary on Zootopia 😂
@African_beefcake in which part of the movie
Yea tell us which part
At the beginning when most of them were young and were talking about what they want to be when older, the cub, the baby jaguar, spoke about going to be an actuary, while wearing a suit.
@@i_go_by_t_now Reallyy omg that's so cute hahah
Very very smart
What if someone gets accidents a number of time?
Thanks for the info. Betting is a better way to describe insurance
You're so welcome! :)
Hi thanks for your great channel! ❤️
Do the actuaries use different probability distributions for their calculations? (Binomial, Normal , Poisson and ....)
Hi there! :) It depends entirely on what role the actuary is in!
@@EtchedActuarial right 👌
Do u recommend majoring in actu sci or math?What order are the exams taken in?
Here are some blog posts that will help answer this:
etchedactuarial.com/best-actuary-major/
etchedactuarial.com/actuarial-science/
etchedactuarial.com/best-order-actuarial-exams/
Hope these help!
While I was in school I was recommended/told by a few of my math teachers to get into actuary work
I’ve seen a lot of sites say that you can go into the actuarial profession with a degree in mathematics. Do you know if that would also work on top of the majors you mentioned? Also, my college offers a minor in actuarial science and I was wondering if that would be beneficial? Thank you so much for these videos, they’re really helpful.
Just pass exams. That's the most important thing. Quantitative degree and Python/Sql/R/etc. knowledge will help, but 2 exams and the ability to interview well is what you need to get an entry level job.
I’m crashing right into the wall for the 5k lol 😂
😂😂😂
@@EtchedActuarial actuary sounds like data science to me, what's the difference?
@@c.d3304 Yeah, right..? Sounded almost the same to me. You take data, interpret it, model it using the programming languages, and use that model to guide customers to proceed in the direction that's beneficial for them. Isn't this basically data science...? I'm 17 and so confused, lol!
Hi! I'm just wondering whether this is in the US or elsewhere? Thanks:)
Hi there! All of my videos are based on the actuarial journey in the US and Canada. Hope that helps! :D
Hello, this sounds really interesting. Can you suggest an appropriate UG major for me in finance (because finance is so vast) ? What universities in the United States offer coursework in actuarial science & internship opportunities?
Anything finance would be fine - pick what interests you the most! And there are lots of universities that offer actuarial science. However, I don't recommend majoring in AS. There's a post about why here: etchedactuarial.com/actuarial-science/
@@EtchedActuarial Thank you so much. I have also considered data science. Could it help in an eventual career as an actuary intern? Please advice. Thank you so much & happy new year!
@@JustMe-fx1uu Certainly could!
Interesting
She is so smart 👍
Thank you! :D
I missed my econ exemptions :(
In ur opinion actuary(bet) is good job in India??
Yup; there's a reason there's no TV dramas bases on actuaries.
So for the story, you would take into account the demographics of the individual, age, gender, commute etc, and use those statistics to asign towards her probability of getting in a reck as x. Then take the forcasted dollar amounts of the different scenarios, no reck , or reck, and average those dollar amounts with the probability x of getting in a reck according to your demographic info. Correct?
Yes, that's right! In the real world, you'd also take into consideration the different times that she could get into an accident too. One year from now, two years, three years, etc. You'd take the probability of getting in a reck at year one, year two, year three, multiply by the forecasted dollar amount, and discount (due to time value of money). The weighted average of all possible scenarios discounted would give you the premium.
I've always loved mathematics, especially applied science
I'll apply for colleges in November, and actuarial sciences always appealed to me.
But how much math do you really use?
Hi Ahmad! Actuaries mostly use probability, statistics, and financial mathematics, and they use math every single day! Luckily the math you'll do daily isn't as hard as what you'll probably learn on the exams. I hope that helps! :)
What if someone does not have skills on business studies will actuarial still be a proper major for that person??
Yes, but good skills to have would be a good foundation or interest in math, statistics and finance. You can read more about whether you will be a good fit for the profession here: etchedactuarial.com/should-i-be-an-actuary/
Do actuaries mostly do excel spreadsheets?
Yes a lot of their work is in Excel.
Im going to major in pure mathematics, is being an actuary an option for me?
Yes! The actuarial field has tons of math concepts. So you, majoring in mathematics will give you great advantage in your actuarial journey!
I was pretty interested in the profession till you said that it takes more than 5 years to pass all these 10 exams. In that case I rather go with a PhD.
Ya, it's a long road! Worth it for some and not for others. Wishing you best of luck with your PhD!
You're working and getting paid pretty well while you are taking the exams, so it's not like you have to wait to enter the profession until you've complete the exams. A typical student will have 2 exams completed when they start their first actuarial position (typically around 65k per year for first job)
Can you stop after getting an entry level job or do you at some point need to complete all of them
@@waldo29 You can stop whenever you want to, but your employer might expect/require you to keep taking exams in pursuit of at least one credential (associate or fellowship) in order to stay employed with them. If you do stay employed in an actuarial role, you will likely be very limited in your earning potential.
Great video :)
Thanks John!
Umm, could you please explain all the 5,000 and 300 I dont really get the whole situation, like who is giving the money and is the money going to be given exactly in the momment or when the accident occurs, please answer
The person who is giving the $300 is the person (the insured) hoping to get $5000, if they (the insured) get in an accident within 10 years. The person who is receiving the $300 is the person (insurance company) who will be giving out $5000 if the individual (the insured) does get into an accident within 10 years
What's the probability that I will lose interest in becoming an actuary in the future
37.286947392761548%
@@EtchedActuarial is this legit
@@FifaMaestroAdam No lol. There's no way of saying how likely it is that you'll lose interest. If you've always loved math and problem solving, then it's probably not something you'll become disinterested in, especially if you've researched the career and it seems like a good fit for you. :)
@@EtchedActuarial well thanks hahaha. I'm 17 right now and kind of clueless
@@FifaMaestroAdam You have some time to figure it out then still! Do lots of research and maybe try talking to some people in the profession to get a sense of whether you'd like it or not.
I have a bachelors in Mathematics. Is A lot of calculus involved?
The first few exams do require quite a bit of calculus, but after that it is rarely used.
@@EtchedActuarial could you suggest an appropriate UG Finance major as finance is so vast (accounting / business / economics etc)? Will majoring in *data science* help? If I end up not passing the exams, I want to make sure I can still work in the finance field thanks to my UG major coursework. I was / am very interested in stock & market analysis but you just introduced me to what seema to be a very very interesting field! Thank you for any advice you can give me. Much appreciated!
I'm not interested in insurance. Or, finance. What job can I get with a degree in Actuary.
Actuary or analyst or teacher basically.
Sounds super hard too
It's hard, but worth it if it's a good fit job-wise for you! :)
Why didn't you just say that an actuarial calculates the insurance premiums. And explain how they calculate them?
Hi..😊👍
Very insightful, thank you... but just one thought... Band camp!
I kind of.. Remember a story, an old roommate told me... He gave a few+ grand in cash, out to a friend of his, in need. In the understanding that it will need repaying (which I understand was agreed upon, perhaps 'under the auspices' of repayment.. I wasn't really sure?)... This example happened nearly 15 years ago, prior of the time I was told... When my roommate was in need (give or take around 15 years later, at current time it happened, when I was told), he sought out his 'said' friend, "that obligation be repaid"? ... The 'said' friend started to speak up, of the like of 'statute of limitations' .. as if there wasn't legal reason to.. ..My question is, would an Actuarys' service be sought out in an example here? If not.. Where would one start? I appreciate your time..
lawyer
I got my maths degree 20 years ago. I wish i became an actuary; it'd come in handy for me now. 😕
It's not too late to start now if this is the right career for you! czcams.com/video/9GlG3-P_bNw/video.html
Please I’m not really good at maths can I still study actuarial science?
Yes! Math can be taught and learned. Besides, you should also be someone who's analytical and good at interpreting data. You see, being good at math isn't the only important skill to become a good actuary. As long as you're persistent, highly motivated, and willing to learn, then you're fine and you'll be a great actuary. 😊
Man, honestly if you're not good at math you'll have a super rough time. These exams are brutal. I definitely would not recommend becoming an actuary if you're not good at math unless you have extremely good work ethic (i.e. studying for hours everyday for years). Still, some of the exams are functional math IQ tests, testing your problem solving ability as much as your knowledge on the subject. This is especially what the exams are like as you go higher up.
You can definitely pass the first few exams with enough work, but you might be limited at a near entry level position if you can't pass the higher level exams. You can still make good money in that position, but it's not a place I would want to be stuck at.
Some people can not pass these higher up exams, even being good at math. I've seen people fail fellowship exams multiple times and give up.
Hey,
I have seen most of the people who are pursuing actuarial science working in Insurance sector but I do have interest in finance industry but I am unable to find any clue where and what to start. Can you help??🙄🙄
Hi Parth, you can start by researching banks and other financial institutions that hire actuaries. From there you can take a look at their job postings to see what requirements they need or reach out to someone for a quick coffee chat!
@@EtchedActuarial Thank you for responding:-)
Licensed Actuary = attorney? according to one Congressman
does an actuary earn more than other people taking another major?
It really depends on what you're comparing to. But fully qualified actuaries do earn a good salary!
What? Wait how hard are the questions or why do they take too long?
Yes the questions are difficult, and you will have to learn a lot of material before taking the exams. It can take hundreds of hours to become fully prepared!
what if the person fakes a crash?
There are procedures that companies follow to investigate accidents.
I too first time
Thanks for watching!
Helpful for introduction to actuary
Mam is it really so hard to become an actuary🤔🤔🙄
It's definitely a long process with all the exams, but doable if you set your mind to it and stay motivated
@@EtchedActuarial ok mam trying to get into it
One more question mam
Does it includes categories for exam ranks or that like stuff
@@ramadeshpande311 I'm not sure what you're referring to but the process is different depending on where you want to work as an actuary
@@EtchedActuarial got it mam
And glad that you are taking comments into consideration cauz in many of the channels we keep commenting and no one responds
Thank you so much😊
@@ramadeshpande311 You're very welcome 😊 Good luck!
Being an Actuary looks as if it is a great career, but I don't have the math skills.
Is actuary a tough career??
Actuary can definitely be described as a tough career. It requires a lot of problem solving skills and critical thinking on the job. Additionally, you'll have to be motivated to complete the actuarial exams and develop relevant skills. However if you are someone who enjoys challenges and love working with math, it can also be a very rewarding career. You can read more about whether it would be a good fit for you here: etchedactuarial.com/should-i-be-an-actuary/
Hi
Hello! :)
I can see banks and loaners really wanting to hire these people
They do!
Google gave a 40 minutes ad before this video 🙄
Yikes, sorry about that! I hope you enjoyed the video though!
@@EtchedActuarial I very much enjoyed the video. Thank you for your efforts.🙂
Can anyone sum up what an actuary is?
Put data into excel sheet and get insurance price.
Manage excel pricing models when you pass enough exams.
@@OakQueso ty!
I've heard actuary data is what determined who won the presidential election in 2016. Trump was decided based on actuary collected data. Imagine that.
Your analysis is misleading A "bet" is gambling for financial gain. The end user will place a bet in order to try to make a financial gain. They may bet on a team/event thinking that it will WIN and try to profit from it. There's an event taking place which is binary, win/lose or yes/no.
Insurance is not to make a financial gain but to cover or protect your asset if it gets damaged such as a car/house etc. The idea is not to make a financial gain but to protect the underlying asset from financial damage. There's a massive difference. Please don't conflate the two issues.
Great explanation of the actuarial profession Brea! We asked the same question to random people on the streets of London. Check out how many people it took to define what an actuary is: czcams.com/video/lgjHtt62ITU/video.html
Oh cool! I'll definitely have to check this out! Thanks for sharing! 😊
you got beautiful eyes though
When I grow up, I want to be an actuary....said no-one XD
True but pretty much every actuary I know loves their job!
You seem so sweet lol
The first 1 minute reinforced my decision not take this job seriously. Should have predicted Covid-19 clairvoyant actuarist!
I love playing fair
Been looking for this vid
The main hard step_ E X A M S!!!