Actuarial Science: What is it and what does it do?

When we think about careers that combine mathematics, statistics, and risk management, one of the first that stands out is Actuarial Science.

Although it is still a relatively unknown degree in Brazil, it is one of the most promising and valued fields in the job market, especially in... sectors that depend on risk analysis and forecasting future scenarios.

In this article, you will understand what Actuarial Science is, what an actuary does, what is studied in undergraduate studies, the areas of work, and more. A comparison between Economics and Actuarial Science to help those who are undecided about which course to pursue.

Keep reading to learn more about this new field!

What is Actuarial Science?

Actuarial Science is a field of knowledge that uses mathematical, statistical, financial, and economic tools to analyze risks and uncertainties affecting companies, people, and institutions.

In practice, the area is responsible for Calculate probabilities. related to future events, such as:

• accidents;
• retirements;
• illnesses;
• investments.

In this way, models are created that help predict financial impacts and ensure long-term sustainability.

The term "actuarial" is directly linked to the forecasting and management of risks.

Therefore, the professional trained in this area, the actuary, It is in high demand in sectors such as insurance, private pension plans, supplemental health insurance, finance, and consulting.

What does someone with a degree in Actuarial Science do?

An actuary's main function is to measure risks and develop strategies to deal with them sustainably.

This means that he works in strategic decision-making., Using advanced calculations to reduce financial uncertainties.

Among the activities undertaken by those who graduate with a degree in Actuarial Science are:

• Preparing insurance calculations: Pricing policies, determining indemnities, and analyzing the probability of claims.
• Private pension management: Projections for retirements, pensions, and benefit plans, ensuring the financial stability of the entities.
• Corporate risk assessment: Analysis of financial, economic, and operational risks that may impact companies.
• Actuarial consulting: Support in mergers, acquisitions and audits, assessing the impact of risks for investors and companies.
• Long-term financial planning: Modeling future scenarios for investments and business sustainability.

In other words, an actuary is a professional who calculates complex scenarios so that companies and institutions can make safer and more profitable decisions.

What does Actuarial Science study?

The Actuarial Science course typically lasts 4 to 5 years and is considered a multidisciplinary degree, as it combines subjects from different areas of knowledge.

During college, students learn content related to applied mathematics, statistics and finance, but they also have subjects focused on administration, economics and law.

Some common subjects in Actuarial Science are:

• Financial mathematics;
• Probability and statistics;
• Differential and integral calculus;
• Demographics and biometrics;
• Stochastic models;
• Insurance and pension plans;
• Risk management and investments;
• Accounting and applied legislation.

This set of subjects creates a professional with an analytical vision, capable of working with both numbers and the realities of business and markets.

Where can an actuary work?

The job market for actuaries is quite broad and diverse.

Companies and institutions that need to anticipate financial risks and ensure stability are constantly seeking this professional.

Some of the main areas of activity are:

Insurance

• Calculation of insurance premiums.
• Definition of compensation.
• Pricing products such as life, auto, health, and property insurance.

Private and Social Security

• Retirement fund planning.
• Guaranteeing actuarial balance in pension plans.
• Long-term financial sustainability projections.

Supplementary Health

• Risk assessment in health plans.
• Cost calculation and annual adjustments.
• Projection of future medical expenses.

Financial market

• Risk management in investments.
• Economic scenario modeling.
• Mergers and acquisitions consulting.

Consulting and Auditing

• Providing services to companies that require specific actuarial analyses.
• Support in financial and accounting audits.

With the increasing complexity of markets and the need to deal with uncertainties, the demand for actuaries is only expected to grow.

Economics or Actuarial Science?

Many people have doubts about which career to pursue., if they choose Economics course or Actuarial Science. That's why we created a topic explaining the difference between the two courses.

Both courses have points in common, such as the use of statistics, mathematics, and analysis of economic scenarios.

However, there are significant differences:

Economic Sciences

• Focus on understanding and analyzing how the economy works on a national and global scale.
• Professionals in this field can work in banks, government, market research, consulting firms, and private companies.
• It has a more general character, encompassing public policies, inflation, the labor market, and economic development.

Actuarial Sciences

• Focus on analysis and risk management, with more in-depth mathematical calculations.
• Professionals work primarily in Insurance, retirement, finance, and health.
• A more technical course, focused on mathematical modeling of future scenarios.

In short: If you enjoy broad and social analyses, perhaps Economic Sciences be the best option.

But if your affinity lies with applied mathematics, statistics, and risk calculations, then Actuarial Science might be ideal.

Job market for Actuarial Science

The job market for actuaries in Brazil and worldwide is increasingly valued. Companies and governments need professionals who can anticipate risks and design solutions for uncertain scenarios, making this a highly strategic field.

According to the Actuarial Institute, This profession is among those expected to grow the most in the coming decades., driven by the need for stability in areas such as pensions, health and insurance.

Furthermore, actuaries have one of the best average salaries among careers related to finance and statistics., ...varying according to experience and industry.

Conclusion

Actuarial Science trains highly qualified professionals to deal with risks, uncertainties, and long-term financial projections.

Actuaries play a key role in areas such as insurance, pensions, supplementary health insurance, and the financial market, helping companies and institutions make safer strategic decisions.

If you enjoy mathematics, statistics, and applying logical reasoning to solve future problems, this could be the ideal course for you.

So, had you ever heard of Actuarial Science? Would you like to pursue a career as an actuary?

A ESEG Faculty (School of Engineering and Management), Located in São Paulo, we have been in the market for over 20 years, offering quality education and following the Etapa method. Visit our website and learn about our courses!