Where Math Meets Business: Online Guide to Actuarial Careers

Whether working to protect individuals against financial risks or advising organizations on
long-term financial planning, actuaries contribute significantly to the stability and
sustainability of businesses and societies. As industries continue to evolve, the demand for
skilled actuaries is expected to remain strong, making it an attractive career path for those
passionate about mathematics, statistics, and problem-solving. In this guide, we discussed
the important things you need to know about how to succeed as an actuary and the steps on
how to become one.

What are actuaries?

Actuaries are professionals who specialize in assessing financial risks and uncertainties.
They apply mathematical and statistical methods to analyze data and predict future events,
particularly in insurance, finance, and pensions.

These financial specialists are crucial in helping businesses and organizations manage risk
effectively by developing strategies to minimize potential losses and maximize financial
stability. They are also essential decision-makers who provide valuable insights and
guidance to ensure their clients’ or employers’ long-term financial health and stability.

How to Become an Actuary

Becoming an actuary typically involves the following steps:

Obtain a Bachelor’s Degree: Most actuaries hold a bachelor’s degree in
mathematics, statistics, actuarial science, or a related field. Some universities offer
an accelerated bachelor’s degree online, which can provide a strong foundation for a
career in this field.

Gain Relevant Work Experience: Actuarial roles often require candidates to have
relevant work experience. This can include internships or entry-level positions in
insurance companies, consulting firms, government agencies, or financial institutions.

Pass Actuarial Exams: Actuaries must pass rigorous exams administered by
professional organizations. These exams cover probability, statistics, financial
mathematics, and actuarial science. There are also Effective Exam-Taking Strategies
for Actuarial Exams that can help you prepare for and pass the exams.

Obtain Professional Certification: After passing the required exams and gaining
sufficient work experience, actuaries can obtain professional certification from
organizations such as the Society of Actuaries (SOA) or the Casualty Actuarial
Society (CAS). Certification demonstrates expertise in the field and may be required
for certain job roles or career advancement opportunities.

Skills and Qualities of Actuaries

Actuaries require a combination of technical skills, analytical abilities, and personal qualities
to excel in their profession. Some key skills and qualities of an actuary include:

Strong Mathematical and Analytical Skills: Actuaries use mathematical techniques
and statistical methods to analyze data, assess risk, and develop financial models.
There are also CAS Computer-Based Testing Resources that could help you gauge
where your skills currently are.

Problem-Solving Abilities: Actuaries must solve complex problems related to risk
management, insurance pricing, and financial planning.

Business Acumen: Actuaries need to understand the broader business context in
which they operate, including industry trends, regulatory requirements, and financial
markets. They should be able to apply their technical expertise to address business
challenges and achieve strategic objectives.

Attention to Detail: Actuaries work with large datasets and complex calculations, so
they must pay close attention to detail to ensure accuracy and precision.

Adaptability: The field of actuarial science is constantly evolving, with new
technologies, methodologies, and regulations emerging over time. Actuaries need to
stay updated on industry developments and be willing to adapt their skills and
knowledge accordingly.

Ethical Integrity: Actuaries are entrusted with sensitive financial information and are
critical in managing risk for individuals and organizations. They must adhere to
professional standards of ethics and integrity, maintaining confidentiality and
objectivity in their work.

Where can actuaries work?

Actuaries are most commonly associated with the insurance industry, where they assess
risk, price insurance policies, and develop financial projections. They may work for life
insurance companies, property and casualty insurers, health insurers, and reinsurance firms.
In addition to working in the insurance industry, actuaries can also work in the following
industries:

Consulting: Many actuaries work for consulting firms that provide actuarial services
to clients across different industries. In this role, they may advise on risk
management, pension planning, investment strategies, and regulatory compliance.

Government: Actuaries may work for government agencies at the local, state, or
federal level, where they analyze data, evaluate risk, and develop policies related to
social security programs, such as insurance, Medicare, and Medicaid.

Healthcare: Actuaries are increasingly in demand in the healthcare sector, where
they analyze healthcare costs, assess healthcare risks, and develop pricing models
for insurance plans and healthcare services. They may work for insurance
companies, healthcare providers, and government agencies involved in healthcare
policy.

Pension Funds: Actuaries are involved in managing pension funds and retirement
plans, where they evaluate the financial health of pension funds, project future
liabilities, and design pension benefit structures.