How To Become An Actuary After College

If you are interested in becoming an actuary, there is no shortage of options for you. In fact, there are many different ways to get started on your journey. If you are already in college, then it is important to start looking at what courses will be required for your degree.

The first thing that you need to do is look at the requirements that your school has set out for their students. You will find that most of them require a bachelor’s degree, although some may also require a master’s degree as well. This means that if you are going to school right now, then it would be wise for you to start looking into what kinds of classes they offer and what kind of math skills they will teach you during those classes. This will help make sure that you have everything covered before graduation so that it does not take any longer than necessary.”

Actuary is a growing, lucrative field with a lot of potential for growth. To become an actuary, you need to go to college and earn a degree in mathematics or statistics. In addition to that, you’ll need to pass the CFA exams and get experience working as an actuary before you can start your own company or work for someone else.

If you’re interested in becoming an actuary, it’s important to know what kind of work you’ll be doing after college. Actuaries are responsible for running financial models and making predictions about future events based on those models. They use their expertise in math and statistics to do this job well. For example, an actuary might help their company decide how much money they should put into pension funds for employees who are going to retire soon. Or they might help guide investments into companies that are predicted to grow over time based on the data they have available at hand.

Actuaries also work with companies who want more information about how well their investments are doing over time compared with other similar investments made by other companies across the country or even across the world (depending on what kind of information they’re looking for). They also work with insurance companies who want to know how likely it is that certain kinds.

How To Become An Actuary After College

So, what exactly is an actuary, and what do they do? For some people, the title of “actuary” might conjure up an image of someone hunched over a computer, plugging numbers into a spreadsheet all day. In today’s business world, however, that is far from the truth. Actuaries find themselves working as analytical problem solvers, developing creative business solutions, and communicating their ideas to a wide variety of audiences. They serve as a dynamic and integral part of their organizations.

If you have solid math and technology skills and love the challenge of finding answers to complex problems, an actuarial career might just be the perfect match for you. With excellent pay, ample job opportunities, and paid study time while you work towards certification, you have found a hidden gem of a career.

The road to becoming an actuary has a number of steps and requires a lot of hard work and studying to make it, but once you do, you are pretty well assured of having employability in this growing field. Investing in the education and training to become an actuary can be your secret weapon to a long, successful, and satisfying career. Find out why the actuarial profession consistently ranks as one of the most desired careers year after year.

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ARTICLE NAVIGATION: Quick Facts About Becoming an Actuary | Why Become an Actuary? | What Is an Actuary? | How Does an Actuary Assess Risk? | How To Become an Actuary | Actuary Education Requirements | Professional Actuary Certification | The Actuarial Career | Trends In Actuarial Careers

Quick Facts About Becoming an Actuary

What is an Actuary?

Actuaries analyze numbers and statistics to assess risk. They are the professionals responsible for setting your insurance rates, ensuring your retirement plan meets your financial needs, and much more. They use tools to help companies determine potential liabilities and decrease the negative effects from possible future events. Actuaries help businesses plan for the future and insulate them from losses. Their work is essential in the insurance industry, where they help design policies and determine premiums that are profitable yet competitive.

Why Become an Actuary?

From 2019 to 2029, the actuary field is expected to grow by 18%, a pace much faster than the overall job market according to the US Bureau of Labor Statistics. With a current median salary of $111,030 per year, the actuarial profession outperforms other mathematical science occupations and provides an income nearly three times the average American job. High demand combined with high salary offers you the prospect of a secure and prosperous career.

Actuaries can often anticipate a full-time yet flexible schedule for a quality work-life balance and enjoy comfortable working conditions in an office environment. In addition to these features, Forbes magazine has named it one of the best professions for women, and it is considered one of the best industries in an economic downturn according to “150 Best Recession-Proof Jobs” by career expert Laurence Shatkin.

How to Become an Actuary

While an actuarial career can start with a bachelor’s degree in any subject, most actuaries choose a major in mathematics, actuarial science, statistics, or another analytical field. Coursework in economics, statistics, and corporate finance is key to achieving professional certification. Outside of math and business, you should also consider classes that develop your skills with computer science and programming languages, as well as professional communication skills.

Professional Actuary Certification

Certification exams are conducted by two organizations in the United States and Canada, the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). SOA certifies professionals working in the fields of life insurance, health insurance, retirement benefits, investments, and finance. CAS focuses on certifications for the property and casualty field.

Employers generally expect entry-level actuaries to have completed one or two certification exams by the time they graduate college. A total of seven examinations is required for associate-level certification. This process typically takes between four and seven years, as each test requires mandatory e-learning courses, hundreds of hours of study, and months of preparation.

After becoming an associate, you can complete three more exams to earn full fellowship status. Working professionals can generally achieve this goal in an additional two to three years. Actuaries participate in continuing education to maintain their certification status, with seminars often sponsored by their employers or the professional societies.

Starting Your Actuary Career

With a number of different areas of specialty — health, life, pension, casualty, and more — internship experiences can help you determine the track you would like to pursue. You may land a job with an insurance company, consulting firm, government entity, employee benefits department, hospital, bank, or insurance firm; really, any business that needs experts to manage financial risk.

Once you begin your professional career, you will likely start as a trainee on a team with more experienced actuaries. While you may start off with basic tasks, your job role will expand as you gain experience and pass additional certification exams.

Most employers offer support as you seek certification. Typically, your company will cover the cost of your study materials and exams. Many employers also offer paid time to study, and your co-workers may set up study groups. With each certification you achieve, you can expect to see your success materialize in the form of a bonus, raise, or promotion.

Technology and the Future of Actuarial Careers

Technology is changing the work in many industries, and the actuarial field is one of those most influenced. Some of the most highly sought after skills today include knowledge of various software and programming languages. Employers seek out actuaries who can expertly navigate technology including:

• Analytical and scientific software, such as IBM SPSS Statistics and SAS
• Database user interface and query software, such as data entry software, Microsoft SQL Server, Oracle software, and SQL
• Financial analysis software, such as GGY AXIS and Oak Mountain Software AnnuityValue
• Object or component oriented development software, such as C++, Oracle Java, Python, and R
• Presentation software, such as Microsoft PowerPoint

Why Become an Actuary?

Job Prospects for Actuaries

If you are thinking about becoming an actuary, it’s unlikely you’ll find anyone who will discourage you from going down the actuary career path. Actuary jobs made the list of 100 Best Jobs by US News & World Report in 2021, not to mention ranking #16 in Best Business Jobs, #23 in Best Paying Jobs, and #25 in Best STEM Jobs.

The US Department of Labor predicts an 18% growth rate in actuary jobs from 2019 to 2029, a rate much faster than the average career. Actuarial careers consistently rank as one of the best jobs in our economy, and this is likely to increase as we come to rely on data in more and more industries. According to Department of Labor statistics, actuaries in 2019 found themselves working in the following fields:

• 71% in finance and insurance
• 13% in professional, scientific, and technical services
• 6% in management of companies and enterprises
• 4% in self-employment
• 3% in government

The insurance industry will fuel the majority of job growth over the next decade. Health insurance in particular is expected to see high levels of job growth as actuaries are needed to evaluate the effects of changing healthcare regulations. Additionally, more actuaries are expected to work in enterprise risk management, helping individual companies manage their own risk.

Actuary Salary

This is one field in which employees will rarely lament about low paying jobs. According to Salary.com, entry level actuary jobs offer an average of $72,700 and increase significantly as you gain experience and complete certifications.

By the time you complete your certifications and become an associate or fellow, you could be making over $100,000 a year. For example, the median salary for actuarial analysts is $113,300, with average employees earning between $98,200 and $126,900.

The high salary range and growing opportunities promise a bright future to potential actuaries. For those who reach the highest status, top actuarial executives, Salary.com data puts the average compensation including bonuses at more than $475,000, with the top 10% earning over $740,000. These numbers make it seem much more attractive to put in the hard work to excel in an actuarial career.

What is an Actuary?

BeAnActuary.com describes the actuary professional as “part superhero, part fortune-teller, part trusted advisor”. With the power of math, technology, and strong analytical skills, actuaries can help businesses plan for the future and protect against financial loss, as well as help individuals save for retirement and enjoy financial security through their investments.

In a nutshell, the job of an actuary is to manage risk. The future is volatile and full of risks and uncertainties, but if you can manage risk well, you can profit from future events. Therefore, risk also represents opportunities, and an actuary must identify these.

What might you do as an actuary?

• Determine the amount a company charges for auto insurance, considering factors regarding the automobile and driver
• Create life insurance products that give parents peace of mind that if something happened to them, their children would be taken care of
• Help companies establish retirement plans for their employees
• Assist banks with managing their assets and liabilities, in order to provide the best returns

Finding efficient methods to manage risk is a critical part of management decisions, and the actuary profession leads the field in this area of expertise. An actuary needs a combination of abilities, including refined business knowledge, sharp analytical skills, and insights into human behavior to manage the complex risks industries are continuously facing.

How Does an Actuary Assess Risk?

Assessing future risks is more easily said than done. Actuaries gather data and then run complex calculations to estimate the probability and likely cost of events, such as death, illness, injury, disability, or loss of property. Then, they create policies that reduce the cost of that risk.

For this reason, actuaries are essential to the insurance industry. Actuaries help design insurance policies, pension plans, and other financial strategies. Specifically, they investigate financial questions like the level of pension contributions required to allow for a comfortable retirement. Actuaries also recommend investment strategies an organization or pension fund should undertake in order to maximize the return on investments using their broad knowledge of statistics, finance, and business.

How to Become an Actuary

Like any other professional career, you need an education to get there, but employers typically care more about your industry certifications than your specific field of study.

To become an actuary, the most common path is to:

1.  Earn an Undergraduate Degree

The most direct educational path is an undergraduate actuarial science degree. Another common approach is to complete a bachelor’s degree in finance, economics, or commerce. Prospective actuaries can also choose seemingly unrelated majors like engineering or art, as employers put more emphasis on completed certification exams.

2.  Complete Additional Courses (If Necessary)

Students completing a degree in an unrelated field may need to complement their undergraduate studies with courses in economics, statistics, and corporate finance. Prospective actuaries will benefit from learning key technologies used in the field, such as programming languages, computer science, and the use of spreadsheets, databases, and statistical analysis tools.

3.  Apply To a Professional Body & Pass Certification Exams

As soon as you begin the senior year of your undergraduate degree, you can apply for membership in a professional actuarial body. You can then start your certification process by taking their courses and passing exams. Most employers expect you to have passed at least one or two of these exams by the time you graduate and start looking for a job.