Jessica Lauren MoonFebruary 26, 2014Stats IIPaper n. 1ActuaryUncertainty is an aspect of life that cannot be ignored and with that uncertainty comes a level of risk. The risk may result in a terribly unwanted event or it may produce an unimaginable success. What will happen is a question that actuaries can analyze and answer to the best of their knowledge. They "are the analytical backbone of our society's financial security programs... and the brains behind the financial safeguards in our personal lives" (Beanactuary), so that individuals can live without worrying too much about what the future might reserve. An actuary is a professional who analyzes the financial consequences of risk. Actuaries use “mathematics, statistics, and financial theory to study uncertain future events, particularly insurance and pension programs” (Purdue). Actuaries promote “formulas for predicting how much money an insurance company will pay in case of claims, which results in determining the overall cost of insuring a specific group, company, or individual” (Ferguson 20). An increase in risk increases the potential costs for a company, which, in turn, increases its rates. Actuaries analyze risk to estimate the number and amount of claims an insurance company will have to pay. They ultimately evaluate the cost of financing the business and incorporate the findings into program design and evaluation. A career as an actuary is better described as a "business" career with a mathematical basis rather than a "technical" mathematical career. Within this profession there is a lot of depth in the actuary title. Actuaries typically perform many different tasks to arrive at specific outcomes. They spend a lot of time “compiling statistics and other data for…half of the paper…a lot of concentration, hard work, consistency and motivation to prepare for and successfully complete every exam they face.” be caught. Typically, each candidate who wants to become an actuary “studies for approximately 100 hours for every hour of the exam” (actuary.org). “Prospective employers suggest that the minimum requirements for hiring are a 3.2 GPA or higher and at least 1 actuarial exam” (Purdue). Desirable qualities looked for in a candidate are technical skills, communication skills, and a diverse background that includes courses in mathematics, statistics, economics, and liberal arts. The actuarial exams, consisting of 30-35 multiple choice problems and lasting approximately 3 hours, administered by both the SOA and CAS, cover a variety of important topics in the insurance industry such as probability, interest theory, risk management and contingencies of life.