How to Become an Actuary
As in most modern-day professional careers, becoming an actuary involves specialization in one of the major categories of practice. Because it operates within the formal environment of finance, becoming an actuary means earning a recognized degree from a reputable institution, taking specialized exams within the specialty you choose, participating in an internship or having experience from an entry-level job, becoming certified, maintaining continuing education requirements, and networking with others in the field.
Assess Your Skills, Talents, and Education an Actuary
The first step to becoming an actuary is to take stock of your skills, talents, and educational achievements. Successful actuaries work in the high-charged financial arena and are professionals of the highest caliber. An actuary must be a consummate expert in risk taking, risk management, investing and financial planning, because they are responsible for their clients’ money. In order to be credible and trusted by both employers and their clientele, you must meet the basic educational standard within the field—a bachelor’s degree (minimum) in a finance-related, statistical or mathematical field.
1. Get a bachelor’s degree and/or a master’s degree
Mathematics, statistics, finance, economics, and actuarial science degrees are all strong foundations for becoming an actuary. If you already have a bachelor’s degree in another field, but desire to fortify your BA with field-related courses, look into professional certification courses, in specialized areas, at reputable institutions. Many revered institutions of higher education offer online certifications for those with their bachelor’s or master’s degrees. Having various certifications from respected universities can only help you in becoming an in-demand professional actuary.
If you have not yet earned a bachelor’s degree or a master’s degree, begin immediately to find a college to meet your needs. Make sure to research the institutions thoroughly to ascertain their reputations in the collegiate community, whether they are accredited, and read reviews as to their suitability for your goals. Online programs are available from some of the most respected colleges and universities, and of course, there are traditional on-campus options. If you cannot financially afford to attend a four-year program initially, consider attending a junior or community college to satisfy your general education requirements. One important thing to remember—make sure your credits from the junior or community college will transfer to the 4-year college you are interested in eventually attending.
2. Test and Improve Your Math and Statistical Skills
Calculus, probability theory, mathematical statistics, financial mathematics, and economics are all areas in which you will need to be strong and feel confident and capable. If you feel weak or inexperienced in any of these areas, take advantage of the many options on the internet, many of which are free of charge. A few examples of websites which offer free classes in mathematics, calculus, economics, etc., are Khan Academy (free classes, video lessons, practice problems and quizzes); Coursera (free courses from renowned universities like MIT and Stanford); edX (free online classes from major universities and colleges); MIT OpenCourseWare (free access to MIT’s courses, lecture notes, assignments and exams); and Paul’s Online Math Notes (free lecture notes, exercises and solutions by Professor Paul Dawkins), just to name a few.
Become Certified, Network and Intern
Professional organizations are the granting bodies of certifications and the source of continuing education units. These professional organizations are also the key to networking and tap into all of the resources within the associations, including internship opportunities. There are two main professional organizations for actuaries, the Society of Actuaries (SOA), and the Casualty Actuarial Society (CAS).
1. The Society of Actuaries (SOA) https://www.soa.org/
Nothing short of a Disneyland for becoming an actuary, the SOA has a plethora of divisions for future actuaries/students as well as accomplished professionals practicing in the field. They offer education, exams, certifications, credentials, past exams and solutions, etc. There are also programs leading to designations—for example the Associate of the Society of Actuaries (ASA), the Fellow of the Society of Actuaries (FSA), and the Chartered Enterprise Risk Analyst (CERA). They have their own Actuarial Science University, scholarships, internships, and a job center. Becoming an actuary means becoming a member of a professional organization, such as the SOA, where you have the ability to be mentored, or mentor others, attend conferences, conventions, keep up with new developments in your profession, as well as meet certification and continuing education requirements.
2. The Casualty Actuarial Society (CAS) https://www.casact.org/
The CAS specializes in property and casualty insurance actuarial concerns, i.e. auto insurance, homeowners insurance and liability insurance. They offer credentialing programs leading to designations such as Associate of the Casualty Actuarial Society (ACAS) and Fellow of the Casualty Actuarial Society (FCAS). In their words, “The Casualty Actuarial Society (CAS) is a leading international organization for credentialing and professional education. Founded in 1914, the CAS is the world’s only actuarial organization focused exclusively on property and casualty risks and serves over 10,000 members worldwide. CAS members are experts in property and casualty insurance, reinsurance, finance, risk management and enterprise risk management. Professionals educated by the CAS empower business and government to make well-informed strategic, financial and operational decisions.”
Job Outlook for Actuaries
According to the U.S. Bureau of Labor Statistics (https://www.bls.gov/), Actuaries have promising opportunities for the time period spanning 2022-2032. The field is growing by 23% per year, which is remarkable since the average job growth rate is 6%. Government experts predict that each year over 7,000 new jobs will become available (between 2022-2032). In 2022 there were 30,000 actuary jobs. The median pay per year was $113,990, while the median hourly wage was $54.80. (As a reminder, the “median” amount is not an average, it is the middle value of a dataset. For the U.S. BLS definition go to: https://www.bls.gov/cps/definitions.htm#medianearnings ).
By pursuing your education, taking specialized exams within the specialty you choose, participating in an internship or having experience from an entry-level job, becoming certified, maintaining continuing education requirements, and networking with others in the field, you will be on your way to a lucrative, satisfying and rewarding career as an actuary.
