Actuaries are trained to be business people as well as mathematicians. Through the use of statistics, analytical skills, and financial theory, they help businesses and organizations manage risk. Being an actuary requires strong analytical skills and creative thinking to help assess the risks of the future, evaluate the future, and minimize undesirable events. Being an actuary also requires a great deal of education, testing, and training. Here’s a look at how to become an actuary.
Educational Requirements to be an Actuary
Most colleges and universities that offer coursework or degree programs in actuarial science are interdisciplinary programs -- meaning mathematics, business, and statistics programs combine to create a comprehensive study program. While it is possible to begin an actuarial career with only a bachelor’s degree, most companies prefer at least a master’s degree in actuarial science. Maintaining a high grade point average will increase the chances of receiving job offers upon graduation.
A master’s degree in actuarial science will prepare you for entrance into the field and often for the examinations required for certification or entrance into professional societies. With a master’s degree, you should be prepared for a position as an actuary, actuarial specialist, or actuarial services director, among other jobs. If you know what manner of career you’re looking for and a master’s degree is sufficient for that position, you may be able to stop your education at this point.
For some people a PhD in actuarial science is more in-line with their particular career goals. Achieving a doctorate in the field prepares you for research or teaching positions (i.e. quantitative methods, statistics), as well as consultant or executive positions. Additionally, a PhD in the field will increase your earning potential. While the Bureau of Labor Statistics states that entry level positions average about $50,000, the top 10% of actuary positions earn close to $200,000 a year.
Examination, Certification, and Professional Societies
Unfortunately, your training won’t end at graduation. To become an actuary, you must take the examinations for a particular society, depending upon which field you choose to use your actuary skills in. Among some of these societies are:
- Society of Actuaries (SOA): for those interested in insurance (life and health), pensions, or employee benefits
- Casualty Actuarial Society (CAS): For those interested in insurance (fire, liability, automobile) and workers’ compensation
- American Society of Pension Actuaries: For those interested in pensions particular to governmental agencies
Being an actuary takes a great deal of intellect and as such these societies are extremely competitive. Each society gives particular examinations and if you pass them you become an associate and then a fellow of that particular society.
Your studies will continue beyond earning your degree and entry into the society of your choice. Qualifications Standards for Actuaries from the American Academy of Actuaries requires 30 hours of continued education annually. These hours are broken down into a different specifications. If you choose to work in a country outside of the U.S., educational standards, certification, and continued education may differ.
