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Becoming an actuary is a smart idea for anyone looking to turn their mathematical, statistical, and financial skills into an in-demand career involved in analyzing the costs of risk.
As vital members of the insurance industry, actuaries compile loads of statistical data to carefully estimate the probability and price tag associated with a certain event, such as an illness, car accident, or hurricane. Actuaries will continue to be in high demand for developing, pricing, and evaluating a wide range of insurance products as well as calculating new risks. In fact, the Bureau of Labor Statistics reports that employment of actuaries will spike much faster than average by 26 percent before 2022!
In order to get started, below we’ve highlighted the common requirements that actuaries need for building a successful career.
1. Earn At Least a Bachelor’s Degree
At minimum, employers will expect new candidates to possess a bachelor’s degree in a quantitative area of study from an accredited institution. While there are programs available specifically in actuarial science, actuaries can come from all backgrounds with a degree in mathematics, statistics, finance, business, accounting, or any other analytical field. For the best career preparation, it’s recommended that you take coursework in calculus, statistics, computer science, economics, and corporate finance. Classes in writing and communications could also be useful for improving your ability to effectively communicate your analysis results. You may want to consider returning to graduate school for an MBA or specialized master’s degree later on for advancing into leadership positions with higher income potential.
2. Gain Entry-Level Actuarial Experience
Most employers will prefer to see some actuarial experience on your resume to ensure you have the essential analytical and math skills. If you’re still in college, try to obtain at least one actuarial internship during your summer break at an insurance company, corporation, or consulting firm. Then, begin looking for entry-level positions at smaller firms to get your feet wet in actuarial work. Whether it’s health insurance, retirement benefits, property and casualty insurance, or life insurance, it’s important to choose an entry-level position in your chosen specialization for the best chances of meeting your career goals. You’ll likely be performing basic data entry and writing reports, but you can learn valuable lessons and form mentorships with experienced actuaries.
3. Pursue Professional Certification
With time, you’ll need to become professionally certified to stand any chance of being promoted and maintaining your hard-earned position. Many actuaries pursue the Associate (ASA), Fellow (FSA), or Chartered Enterprise Risk Analyst (CERA) credentials from the Society of Actuaries (SOA) to receive full professional status in the field. For achieving the first associate certification, you’ll need to successfully complete a series of five examinations, e-learning courses, and professional seminars. In most cases, actuaries need four to six years to acquire the ASA certification and two to three additional years for the FSA designation. After meeting this mark, you’ll need to maintain your certification by attending continuing education seminars, which are often sponsored by employers.
Overall, actuaries are highly trained professionals who use their analytical, detail-oriented mind to forecast the future costs and probability of events for keeping their organization profitable. By following this step-by-step guide on becoming an actuary, you’ll unlock fresh opportunities for applying your expertise in financial matters
