High Demand for Actuaries in the World
View(s):Today’s world is full of digital data that is constantly evolving. The financial and business industry is one of the world’s largest and most data-driven sectors in any country, particularly in developing countries. Thus, using such data to draw conclusions is not simple, but data-driven decision making (DDDM) has become a very popular scientific approach to decision-making with a high degree of efficiency. On other hand, these financial and business industries must deal with risk (or uncertainty) as a result of a variety of factors, which has been a major issue for such industries. Thus, in order to make the best use of DDDM, the potential outcomes due to risk must be considered.
The problem will then be determining how to manage the risk and make the decision. Different financial institutions may face various types of risks. As a result, in order to survive with risk, these businesses must face challenges. Risk management entailed identifying, analyzing, and responding to risk. It entails optimizing the outcomes of positive risks while minimizing the consequences of negative risks.
In order to tackle both approaches simultaneously, there has been a continuous increase in the demand for graduates having sound mathematical and statistical backgrounds with the knowledge of basic computing and basic account and financial knowledge, who are highly competent in critical thinking and financial data analysis. This happens to be the industry which mostly demands graduates possessing diverse quantitative skills with a deep knowledge of mathematics, statistics, and their applications, complemented by the background knowledge in finance, economics and computing. These graduates should be trained to become actuaries. Actuarial science is a discipline that uses mathematics, statistics and financial theory to measure, manage and mitigate financial risk and uncertainty.
The Bureau of Labor Statistics predicts a 24.5 percent increase in employment for actuaries between 2020 and 2030. This rate is much faster than the national average for all occupations. Furthermore, actuaries are higher paid than other professionals and face less stress. Actuaries assess, evaluate, and manage the financial risks that individuals, organisations, and governments face in order to plan for the future effectively. Actuaries evaluate risks such as illness, disability, and death, as well as the effects of natural disasters, major economic downturns, a lack of raw materials, changes in import and export policy, and social change.
In order to cater such demand, a novel degree: B Sc (Hons) in Financial Mathematics and Applied Statistics (FMAS) was started by the Sri Lanka Institute of Information Technology (SLIIT), Malabe in June 2021. The formal approval was obtained from the Ministry of Education (Gazette number: 2216/39 dated 27th February 2021) to offer the above degree. This is the only opportunity for the students who miss state universities and who love to develop their carrier in mathematics and statistics.
Mathematics is the foundation of the financial world. It allows investors, traders, and bankers to make optimal decisions and rationally mitigate risk. Financial mathematics is the application of mathematical models to actuarial sciences in financial activities. Applied Statistics is the application of statistics to solve real problems based on data collected from samples. It is the root of data analysis, and the practice of applied statistics involves analyzing data to help define and determine business needs. The combination of Financial Mathematics and Applied Statistics leads to model and solving any uncertainties (risk) in the financial sector and thus this combination can be considered as the. “Queen of the financial world”.
The eligibility criteria for B Sc (Hons) in FMAS is to have three passes in one and the same sitting in the Physical Science stream at the local G.C.E. Advanced Level Examination or equivalent qualification of London/Cambridge A/L examination in one and the same sitting and a pass in the Aptitude Test conducted by the Institute.
The degree consists of 127 credits hours distributed between courses in actuarial science, mathematics, and statistics along with the courses in computing, economics, accounting, and finance. In addition, students are required to undergo an internship course in the third year which will allow them to work in an insurance company or risk management department in the banking or business sector. This s an interdisciplinary programme and the programme is aligned with level 8 NQF in Sri Lanka.
Why the B Sc (Hons) in Financial Mathematics and Applied Statistics is important?
n This is the only degree available in non-state universities for those who love mathematics.
n This is a unique degree and no degree under this name is available in the world.
n The course teaches advanced mathematics and statistics and their real-world applications in the financial context.
n The degree aims to train actuaries who can contribute significantly to handling any type of risk commonly face in business as there is a dearth of qualified actuaries in almost all countries.
n The core values of the degree are (i) professional, (ii) responsive, (iii) creative, (iv) inspiring and (v) collaborative.
n As the risk is common in all types of business qualified graduates with sound knowledge of mathematics, statistics, computing and accounting have a high demand.
n The future of actuaries is rapidly evolving as technologies like artificial intelligence (AI), machine learning (ML), and automation create a new future of work.
n Due to the advancement of AI technology, some people will fall behind and leave the industry. But for those who have exposure in FMAS will have a great opportunity to use AI-based actuaries to get better analytics and recommendations.
n Such a graduate will be a member of the decision-making group at the top level of any company.
n Actuaries are intelligent and good thinkers and have good analytical skills.
n The graduates can get a full fellowship in Actuaries Institutes in various western countries after undergoing about 5 years of experience and by completing a few examinations conducted by actuarial institutes.
n Parts of such examinations can be done while you are doing your undergraduate degree.
n You have a better chance of enrolling in top-ranking universities around the world for higher degrees in fields such as data science, business analytics, financial mathematics, actuarial science, statistics, and so on.
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