Actuarial Interview Questions with Answers:-
1. Define what is the role of Actuarial Analyst in the insurance company?
Actuarial analyst’s works in the insurance industry and use a statistical model to analyze the data and calculate the costs associated with certain events such as
- Product failure
- Property damage
- Injury and death
- Destruction due to natural calamities ( hurricanes, earthquakes, pandemic and terrorist attacks)
2. Define what are the skills required to become actuarial?
Skills required to become actuarial is
- Good understanding of statistics and math’s
- General knowledge of business and finance
- Basic knowledge of programming languages, statistical analysis programs, spreadsheets and databases
- Good communication skills which include preparing reports and giving presentation
- Good analytical and problem-solving skills
3. Define what are the benefits of working as an actuary?
- Flexibility in working hours: Actuary can have flexible working hours and can balance his professional commitments
- High Salaries: From beginning onwards, the salary package is excellent, and in high paying jobs it is considered as one of them
- International Opportunities: There is no limitation to one country, it is applicable all over the world
- Central Role: Many companies and government institute are highly dependent on the research and result of the actuary. On the basis of their calculation, they take a decision whether to implement the new ideas or not
- Wide Scope: The area or field for an actuary is wide, you can work in a specialist area like insurance, pensions, benefits, healthcare, investments, and banking, etc.
4. Define what is the role of actuary analysts in investment?
The main role of actuary analysts is to save companies money and time, by identifying the possible risk in investment. Apart from that, they have to
- Identify an area of investment having a minimum risk factors
- Avoid the situation where the quantifiable risk is relatively low in terms of the potential gains
- To provide actual quantifiable estimates by creating complex financial models
- Providing rating or ranking of different investment opportunities based on the risks to the possible returns
5. Define the role of chief actuaries?
Chief actuaries act as an actuary head or supervisor for the government organization as well as corporate. They keep an eye on other actuaries and distribute and direct assignments. Also, they prepare reports and reviews of business functions like budgets and mergers. Further, they implement policies and guidelines relating to actuary risk analysis.
6. Define what is the actuarial report?
An actuarial report includes the future and current conditions of the fund, like in case of pension or an insurance policy, it helps to decide whether it meets the need of people depending on it. For government organization, this actuarial report is available on public request, while, for a privately managed fund, it might not be accessible to the public.
7. Name some of the most common actuarial software used in industry?
Some of the common actuarial software used in industry are
- Milliman Actuarial software solutions
- Poly Systems
- Towers Watson
8. Define what is the Casualty Actuarial Society?
Casualty Actuarial Society is a professional association of non-life actuaries, of risk management professionals who work in industries other than life insurance. The motive of this society is to give knowledge to members and the general public about actuarial analysis of property and liability risk
9. Explain some of the topics that Actuary should be proficient in?
To become a successful actuary, you must have a good hold on
- Linear Algebra
- Differential Equations
- Probability & Statistics
- Regression Analysis
- Time series Analysis
- Finance & Management
- Computer science & communication
10. Define what is Actuarial life tables?
Actuarial life tables are statistical charts that provide detail about life expectancy in a given population.
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11. Define what is lognormal distribution in the context of insurance?
A lognormal distribution is a probability distribution that is used as a model to claim size distribution; it is positively skewed and has a range from zero to infinity.
12. Define what does a pension actuary do?
The job of pension’s actuary is to help pension’s providers to set the pension rates and craft retirement policies that minimize risk. They apply their skills to the creation and maintenance of sustainable retirement plans. Majority of the pension actuaries work in pensions actuarial firms while others work in government bodies.
13. Define what is the role of actuarial assistant in the insurance company?
Actuarial assistant is a helping hand to actuary; it plays a valuable support role to the actuary, assisting with the calculation of premium rates, policy liabilities and developing new products.
14. Define what are the responsibilities of a property or casualty actuary?
As a property or casualty actuary, responsibilities include
- Conducting studies and analyzing of rates according to geographical area and type of insurance, such as homeowner rates or automobile rates
- Preparing materials or evidence that tells the changes in the rate for insurance is legitimate
- Developing plans for the company to enter a new line of insurance
- Conducting research on new statistical models and methods for estimating claims
15. Explain the role of Actuary in a consulting firm?
The role of the actuary in consulting firm varies, it may include
- Give investment advice
- Evaluating a company’s insurance program cost for the employees
- Can work for a labor union to evaluate and estimate Define what the new health plan provided would cost
- Giving evidence on how automobile insurance rates should be determined
- Testify in court about the loss of potential lifetime earnings by a person who has been disabled or killed in an accident
- Determining the future pension benefits based on the current value in divorce cases.
16. Tell me about a time when you had to work hard to achieve your goals?
17. Where did you grow up? Why did you leave there?
18. Tell me about your computer skills.
19. Tell me about a time when you had to work in a group?
20. Do you follow up on current events? What is your favorite news source?
21. What was your greatest accomplishment in your past job?
22. Have you taken any exams?
23. What area of the actuarial field are you looking at?
24. Tell me about a situation in which you persuaded a large group of people to change their course of action?
25. What is your ideal company to work for like?
26. Describe a recent important decision you’ve made?
27. What type of work do you like to do best?
28. What do you know about our company?
29. Do you plan on taking any more actuarial exams in the future?
30. How do you keep on learning features on computer programs, such as excel?
31. When can you start?
32. What distinguishes you from twenty other people who can do the same tasks you can?
33. What do you do in your free time?
34. Tell me why I should hire you over all of these applicants?
35. Where did you grow up? Why did you leave there?
36. How much do you want to make?
37. Tell me about a time when you had to work in a group?
38. Do you follow up on current events? What is your favorite news source?
39. What are your goals in life?
40. What do you do in your free time?
41. Tell me why I should hire you over all of these applicants?
42. How familiar are you in Access?
43. How familiar are you with Excel? If I asked you to take a competency exam in Excel, would you be okay with it?
44. What languages can you program in?
45. What classes did you like most in college?
46. Tell me about your computer skills.
47. How many gas stations are there in Florida?
48. What was your biggest mistake in your past job?
49. How familiar are you in Access?
50. How familiar are you with Excel? If I asked you to take a competency exam in Excel, would you be okay with it?
51. What languages can you program in?
52. What makes you like numbers? When did you realize you enjoyed math?
53. What organizations did you partake in as a college student?
54. What classes did you like most in college?
55. What organizations did you partake in as a college student?
56. What is your favorite part about statistics?
57. Why do you want to be an Actuary?
58. Did you have any jobs while in school?
59. What was your greatest accomplishment in your past job?
60. What organizations did you partake in as a college student?