To earn the designation of actuary or an on-campus or online actuarial science degree, strong fundamentals in mathematics are essential. After you receive your bachelor’s degree, a series of rigorous actuarial exams must be passed to become an actuary. The exams can take between four and eight years to pass.
Related Actuary Programs
What does an actuary do?
Actuaries use their knowledge of statistics, mathematics and finance to assess risk and the probability of certain events occurring. This information helps businesses create products and services that minimize that risk.
For example, over half of actuaries are employed in the insurance industry. For life insurance, actuaries will estimate the probability of death occurring at certain ages and the likely cost to life insurance companies when that happens. This helps the company set prices that will make them a profit when they sell life insurance policies.
Actuaries also deal with financial situations such as how resources need to be invested to maximize the return on those resources.
Actuaries help design:
• Insurance policies and plans
• Pension plans
• Life insurance tables
• Securities offerings from financial firms
What kind of education does an actuary need?
As suggested above a strong foundation in math is basic to the profession. Most actuarial science programs require a bachelors degree and rigorous coursework in:
• Applied Statistics
• Economics
• Advanced Mathematics
• Finance
• Computer Mathematics Modeling
A degree as a statistician is a good way to begin a career as an actuary.
In most cases, the companies like to see the first actuarial exam passed prior to hiring a potential actuary. This exam measures the student’s acumen in math, statistics and calculus.
How much does an actuary earn?
Bureau of Labor Statistics suggest that median annual salaries for actuaries are at around $84,810. According to the National Association of Colleges and Employers, annual starting salaries for bachelor’s degree in actuarial science graduates averages about $56,320.
Where can an actuary work?
About 55% of actuaries work in the insurance industry including life and health, property and casualty and personal lines classes. The Society of Actuaries (SOA) certifies actuaries in life insurance, health benefits systems, retirement systems, and the finance and investment fields.
Opportunities exist in other industries such as consulting firms. Companies that may not want to employ full time actuaries tend to hire consulting actuaries to analyze risk on a project basis.