The difference between actuaries and underwriters is often misunderstood by anyone not in the insurance industry. Actually, even some people in the insurance industry still get confused!
So, what’s the difference between an actuary and an underwriter?
The difference between actuaries and underwriters is that they perform different functions within an insurance company. Actuaries use data to determine the premium that should be charged for anyone that fits into a given bucket. Underwriters decide which bucket an insurance applicants fit into.
If you’re wondering what an actuary does, you’ve come to the right place. I’ve worked as an actuary for the past 4 years
So, what does an actuary do?
An actuary uses large amounts of data along with their expertise in statistics and finance to determine how much money should be set aside now in order to pay for costly events that may randomly occur in the future.
Deductibles on your auto insurance are actually not as difficult to understand as you may have thought. As an actuary (someone who prices insurance) I get asked about them all the time.
How do auto deductibles work? If you get in an at-fault accident and make a claim to your insurance company for damage to your car then the company will only pay for the cost of repair in excess of the deductible. If the cost of repair is less than the deductible then the company will pay $0.
If you want a career where you’ll be using your math skills everyday, becoming an actuary or an accountant are both viable options.
But, what is the difference between an actuary and an accountant?
The primary difference between an actuary and an accountant is that actuaries predict the financial impact of events that may or may not occur in the future, whereas accountants deal with the financial impact of events that have already occurred.
Actuarial science is becoming more and more popular among math-loving students looking for ways to use their skills after college.
So, first off, what is actuarial science?
Actuarial science is the field of study relating to the quantification of risk using math, probability and statistics. These highly specialized skills are primarily used in the insurance industry to ensure that insurance companies are financially stable now and for decades into the future.
If you’ve ever considered becoming an actuary, you’ve probably heard the term “valuation actuary” before.
But, what is a valuation actuary?
It’s an actuary that is responsible for determining the reserves for an insurance company. The reserves ensure that the company has enough money to pay for expenses and claims that the company anticipates it will have to pay in the future.
If you recently failed an actuarial exam, I completely understand if you're feeling like you have no clue what to do differently next time. Lots of people feel that way, and it's very normal. Why did you fail your exam? Well, here are 3 possible reasons for...
Feeling stressed, overwhelmed, and anxious while studying for an actuarial exam? You're not alone. I've come up with these 5 tips to help you reduce actuarial exam stress while also learning to balance studying and life. Set specific daily goals for yourself....
I’ve been running the Study Strategy Program for Exam P and FM for just about 1 year now, and throughout that time I’ve given members hundreds of little nuggets of advice. In this post, I thought it’d be a good idea to share some of them with you! So, here are...
When I was first considering becoming an actuary, I really had no clue what to expect. Now, after having been working as an actuarial analyst (more about the actuarial analyst career here) for the past 4 years, I have a much better idea of what they really do. These...