Actuaries: The Statistical Wizards

Numbers play a critical role in the daily lives of everyone around the world, whether we notice it or not. We make purchases, follow time schedules, and measure ingredients for recipes, but those are the numbers that most of us think about consciously when we are completing those related tasks. The numbers that are most important to our lives we may never even have given a thought to, such as our estimated life expectancy, the chances we get permanently injured on the job, or the amount we will need to contribute to our 401k plan each month to have a comfortable retirement. Thankfully, there are extremely well-trained financial professionals who do take the time to think about these crucially important figures and make the calculations that allow us to comfortably go on with our lives without too much worry. These skilled statisticians are known as Actuaries.

Actuaries analyze the financial costs of risk and uncertainty. They utilize mathematics, statistics, and financial theory to assess the risk that an event will occur, and they help businesses and clients develop policies that minimize the cost of that risk. Actuarial work is essential to the insurance industry. Most actuarial work today is done with computers. Actuaries use database software to compile information, and use advanced statistics & modeling software to forecast the probability of an event occurring, the potential costs if it does occur, and whether the insurance company has enough money to pay future claims. Actuaries typically work in teams consisting of other financial professionals, including accountants, insurance underwriters, and financial analysts. There are many different types of specialist actuaries, depending on the type of insurance or financial product or service they are analyzing. Some examples of specialist actuaries are health insurance actuaries, property & casualty insurance actuaries, and pension & retirement benefits actuaries.

Becoming an actuary is a difficult and time-consuming process, which is one of the reasons the profession is relatively small; there were only 24,600 actuaries practicing in the US in 2014. To enter the actuarial field, one must complete a bachelor's degree, generally in mathematics, actuarial science, statistics, or some other analytical field. Related coursework in economics, applied statistics, corporate finance, and computer science are all very useful for prospective actuaries, as they will help with daily tasks actuaries in the workforce deal with. Once graduated with a bachelor's degree, a prospective actuary must take a series of exams to be licensed as an Associate Actuary by one of the 2 main certifying boards. There is also a higher Fellow designation that requires more work experience & exam passing. Typically, it takes between 4 & 6 years post-college for an actuary to gain Associate status, as the exam process is very intense. Most actuaries do not regret their choice, however, as the career is quite lucrative; the mean annual salary in 2014 for actuaries was $110,090, substantially greater than the national average.

If you are interested in learning more about a career in the Actuarial field, check out our infographic below, it is full of helpful information to start you on your journey to a great professional career. For even more information, be sure to come back to our Facebook, Twitter, and Instagram pages all week long to learn more about Actuaries and what a career in this rapidly growing field is actually like.

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The Easy Way to Plan Your Financial Future

Americans today are concerned about the lagging global economy & growth prospects of the economy here at home, especially after learning of the relatively flat final quarter of 2015. The US stock markets have lost over $1 trillion of value in the first month of trading this year, partially due to concerns from abroad, but local issues including the interest rate tightening by the Federal Reserve & the almost historic lows in oil prices have also contributed. In these trying financial times, many Americans are looking for safe harbor for their savings so they can accomplish life goals like retiring, putting children or grandchildren through college, or buying a first home. Fortunately, there is a veritable army of financial professionals waiting in the wings to help educate, inform, & make difficult decisions regarding investments & finances. These dedicated professionals are known as Personal Financial Advisors, and they are eager to help put your money to work!

Personal Financial Advisors assess the financial needs of individuals & help them make decisions on investments (like stocks and bonds), tax planning, and insurance. Advisors help clients plan for short and long term goals, including meeting education expenses & saving for retirement with investments.

They invest client funds based on the decisions made by the client. Many advisors also sell insurance products or provide tax advice, but they need special certifications & must be registered properly to offer these services. As of 2014, there were nearly 250,000 personal financial advisors in the US, and the profession is expected to grow at a rate of 30% from 2014 - 2024, which is much faster than the average occupation. Personal financial advisors earn significantly more than the average American, as the mean annual salary for an advisor is $108,090, compared to $47,230 for the average job. That hefty paycheck comes with a good deal of work as well; 30% of advisors worked more that 40 hours per week in 2014, and many go to meetings at night or on weekends to solicit new clients. They also must be well-educated, as advisors require a bachelor's degree, as well as a great deal of on-the-job training. Advisors with higher degrees or certifications like the Certified Financial Planner (CFP) designation can expect to earn more & may gain more clients also.

If you are interested in learning more about Personal Financial Advisors & how they can help you invest wisely, check out our fact-filled infographic below. Also, be sure to check back to our Facebook, Twitter, & Instagram pages all week to find more awesome financial advisor content!

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Risk Management Expertise: Insurance Underwriters

2015 has been a year of ups & downs for most of the world, but now it is nearing an end. As we approach December 31, and consequently the start of a new year, one thing that many people forget about or just avoid for the vast majority of the calendar year pops up once again: insurance. There may be some of our readers who view insurance as a necessary evil, something that nobody really ever wants, but we all need in case of disaster. Even more people see insurance companies as "black boxes" that take in all of their information & then spit out a rate quote that seemingly has nothing to do with any of the information that was provided besides being way too expensive. However, there are people working behind the scenes at these insurance companies, as well as at other businesses, to analyze the risks presented by the people & corporations applying for various forms of insurance & come up with an appropriate premium amount to cover the risk taken by the insurer. These professionals are called Insurance Underwriters.

Insurance Underwriters decide whether to provide insurance and under what terms. They evaluate insurance applications and determine coverage amounts and premiums. Underwriters analyze the risk factors on an application & must achieve a balance between risky and cautious decisions. If underwriters allow too much risk, the insurance company will pay out too many claims. But if they

don't approve enough applications, the company will not make enough money from premiums. Most insurance underwriters specialize in one of three broad fields: life, health, and property and casualty. Although job duties are similar, the criteria that underwriters use vary. For example, for someone seeking life insurance, underwriters consider age and financial history. For someone applying for car insurance (a form of property and casualty insurance), underwriters consider the person's driving record. Underwriting as a profession most likely got its start in the Age of Imperialism (1700s - 1800s), as banks like Lloyd's of London accepted risks related to long sea voyages in exchange for premiums. The financier who is accepting the risk would put together a contract & quite literally sign their name underneath the area specified for risk information. Hence, we now use the term "underwriting"!

If you want to learn more about the Insurance Underwriting profession, check out our infographic below, which details job duties, how to get into the field, salaries & benefits, as well as statistics on the professionals who comprise the underwriting occupation today. We will be posting insurance underwriting related content all week on our Facebook & Twitter pages, so be sure to stay tuned for more interesting & insightful information!

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