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Interview with Nikita Prabhu - General Insurance Actuary

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Ques 1: Why did you choose Actuarial Science as a career? Ans: I came to know about Actuarial Science when I was in high school from my father who is an insurance agent. He showed me the Ready reckoner for premium rates and told me that ‘actuaries’ were behind the mathematics of it. I researched the profession and found it quite fascinating. I could apply the knowledge gained from the study of mathematics, statistics, economics, and finance to solve a range of real-world problems. It seemed highly rewarding. Ques 2: How is it like to work in both consulting and core Insurance based company environments? Ans: I was fortunate to start my career in consulting with Ernst & Young. Early on in my career, I got exposure to the different fields that actuaries work in, such as life insurance, employee benefits and general insurance. This initial experience aroused my curiosity towards general insurance (GI) and hence I chose to become a GI actuary. In a consulting firm, you get the

Interview with Chelsea Adler - Pricing Actuary

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Interview with Chelsea Adler Ques 1: Why did you choose Actuarial Science as a career? Answer: I was initially drawn to the actuarial profession because I love math and statistics. However, what really sold me was the collaboration and variety of work. No day is the same and I love getting to partner with individuals throughout an organization to accomplish shared goals. Ques 2: According to you, how important is it to keep yourself updated regarding latest market trends? And how you keep yourself updated? Answer: It’s essential! When your job involves predicting the future, it’s important to take in all the relevant information. To stay up to date on the latest trends, I regularly attend continuing education sessions, read actuarial publications and investigate emerging hot topics. Ques 3: What are your roles and responsibilities in your current role so that our readers will know what type of work they will do once qualified. Answer: I currently work as a Senior Pricing Ma

Interview with Nicholas Kallis - Qualified Actuary

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  Interview with Nicholas Kallis, FSA, MAAA   Ques 1: Why did you choose Actuarial Science as a career? Answer: I recall my last year of high school graduation, pondering and deliberating on what a suitable career would be. My mathematics teacher introduced me to the world of actuarial science by bringing some magazines and periodicals to read about this profession. My teacher that way planted the seed and from that point on, further research and meeting a successful practicing actuary solidified this goal and path for me to pursue. Ques 2: How is it like to work in USA and Cyprus. What will be the difference you observe in both insurance markets? Answer: I must say, always from my point of view, the differences are significant. At the same time one has to fairly and reasonably compare the two countries and respective markets. The USA of course is quite advanced, offers tremendous opportunity in terms of credentialing, continuous development, remuneration and other aspects, as

Difference between Diversified and Undiversified SCR

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Difference between Diversified and Undiversified SCR – Solvency II Before reading this article, kindly read the following 2 articles to make the most sense out of it: Solvency II - Phase 1 Solvency II - Phase 2 - Solvency II SCR is a Value at Risk measure, it can be calculated via Standard formula as well as via Internal Model - VaR is calculated for each component risk, then the diversified SCR is determined with reference to the correlation between each component. This is done by taking the sum over all risks of the square root of the product of their SCRs multiplied by the correlation coefficient - Broadly speaking, suppose you are a group Insurer with 4 entities across the globe named A,B,C and D   - All four of them have SCR has $100 each. Then at Group Level your SCR is definitely less than $400 because we have to allow for diversification via correlation matrices. - Diversification occurs wherever the risks are not perfectly correlated. (Hedging would occur where they

Derivatives: Forwards vs Futures

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  Before understanding what is derivative, let’s learn what is underlying asset. Underlying asset: Underlying asset can be real asset such as commodities, gold etc or financial assets such as index, interest rates etc. Derivatives: ·         These are financial instruments who value depend upon or is derived from some underlying asset. ·         A derivative does not have its own physical existence, it emerges out of contract between the buyer and seller of derivative instrument. ·         Its value depends upon the value of underlying asset. Hence returns from derivative instruments are linked to returns from underlying assets. ·         The most common underlying assets are stocks, bonds, commodities, market indices and currencies. ·         Derivatives are mainly used to control risks. They can be used to reduce risks (a process known as hedging) or to increase risks in order to enhance returns (speculation)   Classification of Derivatives: ·         Broadly we c