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Becoming an Actuary

Updated on June 25, 2013
Source

© 2013 by Aurelio Locsin.

Actuaries reduce the cost of risk and uncertainty by analyzing the likelihood of events, such as accidents and disasters. They then determine possible compensation for the situation. They work primarily with insurance companies, so their figures must provide enough profit for their organizations and yet deliver adequate financial coverage for clients.

Education

The path to an actuary position begins with a bachelor’s degree in actuarial science, statistics, business or math, which is available at colleges and universities. Georgia State University shows an example of a four-year curriculum for actuarial science. It provides a general education through a foundation of English, philosophy, history and speech. It then continues with courses in higher-level mathematics, statistics, accounting, business and computer science. Some programs of study include an internship to provide students with experience in the real world.

Certifications

Two professional organizations offer the certification needed to become a full actuary. They are the Casual Actuarial Society for those in the property and casualty field, such as automobile and homeowners insurance, and the Society of Actuaries, for those in life and health insurance, investments and finance. Most American actuaries have the SOA certifications. Both organizations offer the associate level, which requires the passing of five to seven exams, and usually takes four to six years of study to obtain. They also offer the higher-level fellowship, which takes another two or three years to earn beyond the associate level. Maintaining these credentials required continuing education in the form of training seminars.

Training

New actuaries generally start out as trainees, learning their skills in teams with more experienced professionals. Some of their work involves other departments, such as marketing and underwriting, so they gain a more balanced view of their employers. Trainees do basic tasks, such as collecting information, under supervision. As they become more experienced, they perform more complex work independently, such as writing reports. Employers usually help all actuaries with certification and pension specialists with the necessary licensing. Pension actuaries must pass two SOA exams and have years of experience before obtaining the required enrollment in the Joint Board for the Enrollment of Actuaries under the U.S. Departments of Labor and the Treasury.

Careers

The number of exams passed often determines how actuaries advance in an organization. Those obtaining fellowship credentials, for instance, supervise junior employees. Actuaries need computer skills for processing information, interpersonal skills for leading teams, and the ability of speak and write well to explain their findings to management and clients. The Bureau of Labor Statistics expects jobs for the profession to increase by 27 percent from 2010 to 2020. This is almost twice the 14 percent predicted for all occupations. Because many companies are outsourcing their actuarial needs, most of the growth will come from consulting services. (REFERENCE 4)

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    • KawikaChann profile image

      KawikaChann 4 years ago from Northwest, Hawaii, Anykine place

      Nicely done alocsin - I must admit, I've never heard the term actuary but the area of expertise has always interested me somewhat. Very informative, tidy, to the point without fluff. Great. Up/interest/follow. Peace. Kawi.

    • rose-the planner profile image

      rose-the planner 4 years ago from Toronto, Ontario-Canada

      Very insightful article! Thank you for sharing. (Voted Up) -Rose

    • Peggy W profile image

      Peggy Woods 4 years ago from Houston, Texas

      Wow...that is some growth prediction for actuaries. Kids contemplating good jobs for the future should consider this if they have the skills for math, etc. Up, useful and interesting. Will share this!

    • Vinaya Ghimire profile image

      Vinaya Ghimire 4 years ago from Nepal

      I did not know Actuary until I read this hub. Actually, I had never heard the word. Thanks for this wonderful introduction to an interesting vocation.

    • rajan jolly profile image

      Rajan Singh Jolly 4 years ago from From Mumbai, presently in Jalandhar,INDIA.

      This is interesting and informative. Voted up.

    • MsDora profile image

      Dora Isaac Weithers 4 years ago from The Caribbean

      The first time I heard someone say he was an actuary, I had to ask; I didn't have a clue what that meant. Thanks for the description and all the other information.

    • vocalcoach profile image

      Audrey Hunt 4 years ago from Nashville Tn.

      I learn something new almost everyday on Hubpages. This hub, describing the job description for an Actuary was interesting. Also sounds difficult:)

      Thanks for this information and for helping me to be smarter today than yesterday:)

      Up and sharing. - Audrey

    • Nell Rose profile image

      Nell Rose 4 years ago from England

      Interesting article as I had never heard of an Actuary before, I knew the job but not the name. Great information, and voted up and shared! nell

    • kschimmel profile image

      Kimberly Schimmel 4 years ago from North Carolina, USA

      I took SOA exams back in the eighties. I used to do FORTRAN programming for pension consultants.