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Actuarial Science

What is Actuarial Science?

  • Actuarial science is a discipline in which mathematical and statistical methods of risk assessment are used in insurance, finance, and other sectors and professions. Several firms, especially insurance companies hire them as a consultant to gauge the growth of their business and calculate the insurance premiums.

  • Actuarial Science provides data collection, measurement, estimation, forecasting, and valuation tools. They derive financial data from the management team. Management then assesses marketing opportunities and the nature of the risks. In the reinsurance areas, actuarial science is utilized to design and price reinsurance. This sets up reserve funds for known and future claims and disasters.

  • Subsequently, actuarial statistical models evaluate both complete and incomplete data. Estimates for the actuarial models are developed on these topics. The course also covers mathematical models for certain types of insurance, e.g., Health, motor vehicle, or disability insurance.

  • Actuarial science includes many interrelated subjects. It combines mathematics, probability theory, statistics, finance, economics, and computer science. Actuarial science uses models to construct tables and premiums.

Where To Study Actuarial Science in India?

Many universities offer actuarial courses that provide relevant training for qualified actuarial certifications. The process differs from country to country and college to college.

Colleges for actuarial science in India are

  • Amity School of Actuarial Sciences- Noida (Delhi NCR) offers the following courses:-

            B.Sc (Actuarial Science)

            B.A. Hons. (Insurance & Banking)

            MBA - Insurance & Financial Planning

            MBA - Insurance & Banking

            M.Sc. (Actuarial Science)

  • Christ (Deemed to be University) - Bangalore offers a course in M.Sc Actuarial Science
  • Bishop Heber College - Tiruchirappalli offers the following courses:-

            B.Sc. (Actuarial Mathematics Science)

            M.Sc. Actuarial Science

            P.G. Diploma (Actuarial Science)

  • Chandigarh University offers a B. Sc in Actuarial Science
  • St. Joseph’s Academy of Higher Education and Research, Kerala offers a course in M.Sc Actuarial Science 

What is the eligibility for Actuarial Science?

One can start the study of being an actuarial science at any stage of their careers. The minimum requires you to be a class XII graduate which even stretches to employed professionals. In order to become an expert of actuarial sciences in India, you need to clear the exams by ‘Institute of Actuaries of India’.

Actuaries usually have a bachelors' degree in math, statistics or another analytical field. To become certified professionals, students must study business, statistics, and corporate finance. Students also take courses outside of math and economics for an actuarial career. Computer science and programming languages help. The ability to work on spreadsheets, databases and statistical analysis tools are valuable. 

How many papers are there in Actuarial Science?

There are a total of 15 exams for being an actuary, 3 of which are practical exams. The exams test your aptitude and applicational skills more than theoretical ones. Here are the details:-



Financial Mathematics


Finance and Financial Reporting


Probability and Mathematical Statistics




General Insurance, Life and Health Contingencies


Statistical Methods


Business Economics


Financial Economics


Business Awareness Online Module (Practical Exam)



Actuarial Risk Management


Model Documentation Analysis and Reporting (Practical Exam)


Communication (Practical Exam)


You have to choose any 2 of the following subjects.


Health and Care


Life Insurance


Pension and Other Employee Benefits


Finance and Investment A


Finance and Investment B


General Insurance Reserving and Capital Modeling Specialist Technical


General Insurance Pricing Specialist Technical


Enterprise Risk Management


You have to choose 1 subject out of the following


Health and Care


Life Insurance


General Insurance


Pension and Other Employee Benefits





Upon the clearance of 12 exams, you are eligible to become an Associate Member of the IAI, and upon the clearance of all exams, you’re eligible to be a fellow member of IAI. Being a member/fellow at IAI makes you eligible to be a legitimate actuary. You should take a college degree in a related discipline as well.

How to prepare for the entrance?

The entrance exam for Actuarial Science is highly competitive and while self-studying is a great option since this is a relatively newer field, proper guidance is always advantageous. Here are some good coaching institutes (Offline/Online) in India:-

  • Actuarial Education Company- Online Course
  • Inflexion Point- Hudson Lane, New Delhi
  • SG Study Circle- Vijay Nagar, New Delhi

The Actuarial Common Entrance Test (ACET) like most entrance tests requires you to be proficient in the following skills:-

  • Mathematics

  • Statistics

  • English

  • General Knowledge

  • Data Interpretation

  • Logical Reasoning

What is the cost of Education?

Most of the education to be an actuary goes into private education-colleges and coaching. While being radical you can do away with both; it is relatively safer and more convenient to be attending a college and self-studying to say no to coaching centres. On average, the coaching costs Rs. 30,000 so that is a margin you can happily spare. 

To take an example of the Amity Actuarial Science, Noida: the fees are as follows:-

Master’s programme: Rs 3,24,200 (annually)

Bachelor’s programme: Rs. 94, 200 (annually)

And following is the annual fees structure of Christ (Deemed to be University) in Bangalore:-



Other Indian States



Other Foreign Nationals





5000 USD

5500 USD





5000 USD

5500 USD

What are the career opportunities?

One can tread the following path in the field of actuarial sciences:-

  • Life Insurance

  • General Insurance

  • Health Insurance

  • Reinsurance Companies

  • Pension Funds

  • Consultants

  • Investments

  • Government

  • Academics

  • Risk Management

In traditional life insurance, the focus of actuarial research is on the analysis of mortality. It consists of the creation of life tables. Compound interest is used for the creation of life insurance, pension and capital life insurance policies.

Modern life insurance programs have expanded. They include

  • Credit and mortgage insurance

  • Key personal insurance

  • Nursing care insurance

  • Health insurance accounts

In health insurance, actuarial research focuses on analyzing disability, morbidity, mortality, fertility and other contingency rates.

What is the Salary of an Actuary?

  • Avg. Salary Actuary in India - Rs 986,829

  • Avg. Salary of Actuary (less than 1-year exp) - Rs 514,994

  • Avg. Early Career Salary (1-4 years) - Rs 774,980

  • Mid Career Salary (5-9 years) - Rs 1,500,000

  • Experienced Salary (10-19 years) - Rs 2,976,877

All salaries are per annum. Source: Payscale

What are the Skills Required?

Following are the skills that you should possess or hone if you want to become an actuary:- 

  • Mathematical Skills and aptitude

  • Good modelling (financial) skills

  • Commercially Sound

  • Accessible 

  • Good communicator

  • With a good civic sense of running businesses 

  • A fair comprehension of the discipline of Statistics.

What are the Books and Study material available?

  • ACET Study Material (Book-1 to 5) for Actuarial Common Entrance Test

  • Study Material Actuarial Science Cs1 Core Statistics Entrance Examination With Topic Wise Analysis, Special Practice Set, Mcq Question

  • A Handbook Of Mathematics For Entrance Examinations

  • Study Materials For Actuarial Science Ct07 Paper Economics With 2000+ Solved Problems Model

  • Study Materials For Actuarial Science Logical Reasoning + Di + English + Maths With Model Solved Papers

  • Actuarial Science CT-1 Financial Mathematics Videos By Scube Tutorials Pendrive

  • Fundamentals Of Actuarial Mathematics

  • The Elements of Actuarial Science

Interesting Facts

Actuarial science became a formal mathematical discipline at the end of the 17th century with the increase in demand for long-term insurance, such as funerals, life insurance and pensions.