News On Japan

Calculating Risk and Responsibility: The Life of an Actuary

TOKYO - In the 18th installment of the series “Paths for Science Students,” Mitsubishi UFJ Trust Bank’s Eguchi offered a detailed look into the little-known but vital world of actuaries—professionals who apply mathematics, probability, and statistics to assess financial risks in pensions and insurance.

Eguchi described the main duty of an actuary as calculating corporate liabilities related to retirement benefits and pension systems, ensuring that companies properly recognize these obligations. “Our role is to calculate the necessary contributions and report the results to clients so that their management is not negatively affected,” he said.

His interest in the profession began during his second year as a mathematics student at university, when he began exploring careers that made practical use of mathematical skills. “I came across actuarial work online and found it suited my strengths,” he recalled. While he also considered accounting and quantitative finance, he chose the actuarial path because it allowed for self-directed study toward certification.

Actuarial work in Japan generally falls into three categories: pensions, life insurance, and nonlife insurance. Eguchi chose the pension field because it involves direct interaction with corporate clients rather than internal accounting. “I enjoy working with people, so I felt the pension field was a better fit,” he said.

Eguchi joined Mitsubishi UFJ Trust Bank for its strong support system for qualification studies and professional growth. The bank provides study leave before exams and has one of Japan’s largest actuarial teams, with about 70 certified actuaries and over 100 trainees currently pursuing certification.

After joining, Eguchi discovered that the job involved far more teamwork than he had expected. “Actuaries collaborate closely with general staff and temporary employees to produce accurate reports. I realized how essential communication is,” he said. The bank also gives young actuaries significant responsibilities early in their careers, allowing them to manage major projects, coordinate schedules, and handle client communications from start to finish.

Earning full actuarial certification is a demanding process that typically takes around eight years. Candidates must pass five subjects in the first stage of exams and two in the second. “Maintaining motivation over such a long period is crucial,” Eguchi explained. He added that while students don’t need the qualification when applying for jobs, those aiming to become actuaries should start studying early to complete as many subjects as possible before joining a company.

According to Eguchi, the profession suits people who enjoy thinking deeply and solving problems. “You must constantly check the validity of data and compliance with laws and accounting standards,” he said. “If something doesn’t add up, you investigate until it makes sense.” He also emphasized that humanities students can succeed as long as they are comfortable with numbers and committed to continuous learning.

Looking ahead, Eguchi hopes to expand his expertise beyond pensions into risk management and data analysis—areas that are becoming increasingly important for actuaries worldwide. “Passing the exams is just the beginning. I want to keep growing and building a second area of expertise,” he said.

He finds the greatest satisfaction when clients express appreciation for his work. “Pension actuaries are involved in every stage of the process, from planning to final reporting. Hearing gratitude from clients makes all the effort worthwhile,” he said.

Source: 産経ニュース

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