Actuary: A Day in the Life
You're a midlevel actuary at an auto insurance company. Until now, premiums depended partly on the driver's ZIP code, which helps predict how accident rates vary between, say, rural and urban areas. But the state has just passed a law prohibiting the use of ZIP codes to determine premiums. Your job is to develop a new pricing scheme. You review a database of your company's claims experience and try out various models on spreadsheets. You ask an employee to dig out some additional data. After several days, you come up with a workable model and compare it against your competitors' pricing.
Next step: Estimate how much your company needs to increase its cash reserve. Finally, you describe your proposal in a meeting with the company's marketing, underwriting, and sales managers.
It's 5 o'clock, but because like most midlevel actuaries you still haven't completed all the exams required for full certification, you attend company-sponsored prep classes. When you get home, you put in two more hours of study. You don't call it a day until 10 p.m.
Smart Specialties
Healthcare Actuary. With lots of healthcare reforms likely in coming years, actuaries will play a key role in figuring out who should pay what.
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