By Amos Kareithi

Governed by strictly controlled issuance of credentials and tough examinations, the world of the actuary is a preserve of a selected few.

An actuary, deals with the financial impact of risk and uncertainty.

According to the Retirement Benefits Act, 1997, an administrator means a person appointed by trustees to administer a scheme in accordance with such terms and conditions of service as may be specified in the instrument of appointment.

Actuaries have a deep understanding of financial security systems, causes of their insecurity and their consequences. The field is not for the faint hearted as clearly demonstrated by the scarcity of qualified professionals worldwide.

The examination and qualification procedure is very demanding.

Consequently, actuaries are in high demand and well paid.

In the UK, where there are approximately 8,000 fully qualified actuaries, post-university starting salaries range between £25,300 and £35,000 (Sh280,000 and Sh392,000).

Lucrative career

As at last year, newly qualified actuaries in insurance companies were earning between £46,000 and £55,000 (Sh5.2 million to Sh6.3 million) per year, translating to a monthly minimum pay of Sh433,000 to Sh525,000.

According to the founding chairman of The Actuary Society of Kenya, Sundeep Raichura, by 2007, there were only five fully qualified actuaries in Kenya, 40 partially qualified while many aspirants had failed examinations or quit studies.

The Wikipedia reports that in 2002 and 2009, a Wall Street Journal survey of best jobs in the US listed actuary as the second best job, while in previous surveys, actuaries had been top-rated.

Many actuaries are general business managers or financial officers. They analyse prospective business prospects in valuing or discounting risky future cash flows, and many apply their pricing expertise from insurance to other lines of business. Some actuaries act as witnesses in court trials to estimate the economic value of losses such as lost profits or lost wages.

In 2007, there were a 500 actuarial science students at local universities. Kenya is the only country in East and Central Africa offering actuarial science courses.