20 Key Attributes Actuaries Need To Succeed In Their Career

by Sophia Miller

Tuesday, September 8, 2015

Actuaries analyze statistical data, such as mortality, accident, sickness, disability, and retirement rates and construct probability tables to forecast risk and liability for payment of future benefits. They may also ascertain insurance rates required and cash reserves necessary to ensure payment of future benefits.

The core tasks that actuaries are likely to carry out include:

Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.
Determine or help determine company policy, and explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public.
Design, review and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
Analyze statistical information to estimate mortality, accident, sickness, disability, and retirement rates.
Provide advice to clients on a contract basis, working as a consultant.
Collaborate with programmers, underwriters, accounts, claims experts, and senior management to help companies develop plans for new lines of business or improving existing business.

In order to successfully forge ahead with their careers, analysts in a survey carried out by U.S. Department of Labor (via O*NET) have marked out the following as important attributes that actuaries would need. These attributes have been selected from characteristics and requirements strongly associated with the occupation. They are

Abilities: Enduring attributes of the individual that influence performance
Interests: Preferences for work environments. Occupational Interest Profiles (OIPs) are compatible with Holland's (1985, 1997) model of personality types and work environments. Six interest categories are used to describe the work environment of occupations: Realistic, Investigative, Artistic, Social, Enterprising, and Conventional. An OIP consists of six numerical scores indicating how descriptive and characteristic each work environment (or interest area) is for an occupation
Knowledge: Organized sets of principles and facts applying in general domains
Skills: These include basic skills, which are developed capacities that facilitate learning or the more rapid acquisition of knowledge. Plus cross-functional skills, which are developed capacities that facilitate performance of activities that occur across jobs
Style: Personal characteristics that can affect how well someone performs a job

We have listed out attributes which were scored 80% or more in terms of importance by the analysts.

Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
Attribute Type: Knowledge Score: 99.4%

Analyzing information and using logic to address work-related issues and problems.
Attribute Type: Style Score: 97%

Being honest and ethical.
Attribute Type: Style Score: 94%

Being careful about detail and thorough in completing work tasks.
Attribute Type: Style Score: 92.8%

The ability to choose the right mathematical methods or formulas to solve a problem.
Attribute Type: Abilities Score: 90%

Being reliable, responsible, and dependable, and fulfilling obligations.
Attribute Type: Style Score: 89.6%

Using mathematics to solve problems.
Attribute Type: Skills Score: 87.6%

Establishing and maintaining personally challenging achievement goals and exerting effort toward mastering tasks.
Attribute Type: Style Score: 86%

Having a strong preference for conventional work environments. Conventional occupations frequently involve following set procedures and routines. These occupations can include working with data and details more than with ideas. Usually there is a clear line of authority to follow.
Attribute Type: Interests Score: 85.71%

A willingness to take on responsibilities and challenges.
Attribute Type: Style Score: 85.4%

Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.
Attribute Type: Skills Score: 85%

Considering the relative costs and benefits of potential actions to choose the most appropriate one.
Attribute Type: Skills Score: 85%

The ability to add, subtract, multiply, or divide quickly and correctly.
Attribute Type: Abilities Score: 85%

Persistence in the face of obstacles.
Attribute Type: Style Score: 83.6%

The ability to apply general rules to specific problems to produce answers that make sense.
Attribute Type: Abilities Score: 82.4%

Knowledge of economic and accounting principles and practices, the financial markets, banking and the analysis and reporting of financial data.
Attribute Type: Knowledge Score: 81.8%

Understanding written sentences and paragraphs in work related documents.
Attribute Type: Skills Score: 80%

The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events).
Attribute Type: Abilities Score: 80%

The ability to communicate information and ideas in speaking so others will understand.
Attribute Type: Abilities Score: 80%

Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.
Attribute Type: Skills Score: 80%