Insurance companies and other companies employ actuaries to help them make informed financial decisions and minimize risk. An agency that offers auto insurance, as an example, must determine just how much to charge unique people for their own insurance. An actuary will use math, statistics, and financial concept, and tools like databases and statistical applications, to determine the risk involved in insuring someone based on their age, driving history, and also the type of car they own. The actuary can then utilize these risk calculations to design various insurance plans and establish prices.
To become an actuary, you should have at least a bachelor’s degree. Many universities and colleges provide actuarial sciences programs that combine business, math, and statistics coursework. You don’t need to major in actuarial sciences to become an actuary, but you should select classes that will build a solid foundation in calculus, statistics, probability, economics, finance, management, and computer science. College is a great time to pursue internships that can provide you the chance to apply this extensive foundation of knowledge in an actuarial position. Your internship may result in some job offers after graduation, however, at the very least, you will make professional contacts in the area.
Certification or Licensure Requirements To Become an Actuary
While a degree in actuarial sciences isn’t vital to getting an actuary, becoming certified is. The initial certification you need to pursue is a member certificate, which you can make by following these steps: Pass a Validation of Educational Experience (VEE) in applied statistics, corporate finance, and economics. A committee will review your college coursework, grades, or appraisal scores to see if you have been adequately educated on key topics in these regions. Complete online classes in professionalism and at the essentials of actuarial practice. These classes are offered by every actuarial society. Pass several actuarial examinations. If you seek certification through the CAS, you may take seven examinations. The SOA requires five exams. Each examination demands countless hours of study and preparation. Once you have your partner certification and earn a couple of years of working experience, you are able to pursue a fellowship certification via the CAS.
Completing a bachelor’s degree takes most people four decades, and it can take four to six years to earn an associate actuarial certification. You have some flexibility in this process, nevertheless, and can begin your career right out of college if you plan ahead. You’ve got the very best chance of landing an entry job if you’ve got your diploma, possess some actuarial experience, and have passed at least 2 certification exams. You can start taking certification examinations while in school, so in the event that you pass two examinations and choose a couple of summer internships, then you can set up yourself as a strong candidate for employment right after graduation.
What does an actuary earn?
According to the Bureau of Labor Statistics, the median yearly pay for actuaries in the USA was $87,650 in 2010, using the top 10 percent of earners making more than $160,000.
While the need for actuaries is growing, there were only 21,700 actuaries used in the USA in 2010. Since actuaries are so well-compensated, it is an attractive field, and competition for jobs can be ferocious. It is possible to boost your prospects by pursuing internships and bypassing some partner certification examinations before seeking a job.
Which are the long-term career prospects for actuaries
The employment of actuaries in the United States is expected to rise by 27% between 2010 and 2020. In comparison to a growth rate of 14% for all occupations during that moment, this is a fast-paced field. The Bureau of Labor Statistics anticipates development to be strong in health insurance on account of the passage of this Affordable Care Act, and especially strong in actuarial consulting. Growth in the life insurance field is predicted to be poorer. A career as an actuary has many paths for advancement. If you get experience and make a fellowship certification, you are able to advance into management and executive roles in consulting and insurance services.
How can I find a job as an actuary?
Many actuarial jobs are in insurance, so search for openings in insurance agencies. More and more companies are using actuarial consulting services to manage employee benefit plans and to assess and minimize risk, and that means that you may direct your job hunt to these firms as well. Most employers are looking for candidates with experience, so it helps to do internships in school. Internships may be great networking opportunities too. If you find that companies are looking for more expertise than what you have, look at locating other entry-level work with an insurance company. Professional societies such as the Society of Actuaries and the Casualty Actuarial Society offer career resources and job boards which you may find helpful.
How do I find out about becoming an actuary?
The SOA and CAS have collaborated on a beneficial source known as Make An Actuary.org. Through this website, you may learn more about preparing to become an actuary, including what classes to take in school, how to locate internships, and how to prepare for certification examinations.