Actuary College Course Requirements
Organizations take a measure of risks as they engage the public in business initiatives. Actuaries review and analyze organizational risks, evaluate the possibility of threats occurring in the future and develop actionable steps to reduce or prevent future risks. The risks can be financial or emotional like a large-scale negative human reaction to the roll-out of a new product or advertisement. Actuary college courses prepare professionals in the field to meet the responsibilities of the job.
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Required Courses
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High school students wishing to become actuaries should take plenty of math, computer science and statistical courses before they graduate. College courses required to graduate as an actuary include three semesters of calculus and economics. You should also take two semesters of statistics and one semester of finance and business communication. Other courses required to earn a Bachelor of Science degree in the field are computer science, linear algebra, mathematical statistics and actuarial models. Some colleges might require you to complete additional coursework. For example, in addition to the above courses, The University of Iowa requires actuaries to complete principles of microeconomics, quantitative methods for actuaries, mathematics of finance and life contingencies.
Recommended Electives
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College electives that prepare you to enjoy a rewarding career as an actuary are business management, managerial accounting, corporate and financial risk management, law, marketing and forecasting. Take electives that give you a deeper understanding of analytical systems and risk management. Many actuaries major in math. However, you can major in a variety of topics including engineering so long as you gain a solid mathematical and analytical background.
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Licensing Examinations
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The Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) are the two leading organizations that provide actuary licenses. Both allow you to register and pay for examinations online through their websites. Associate of the Society of Actuaries (ASA), Chartered Enterprise Risk Analyst (CERA) and Fellow of the Society of Actuaries (FSA) are types of licenses SOA and CAS provide, with FSA and CERA licenses being the more advanced licenses. You can take basic licensing examinations while you are in college. Advanced examinations cannot be taken until after you graduate. The tests typically include about 30 questions that take approximately 3 hours to answer. Questions cover applied statistics, retirement benefits design and pricing, operational risk and construction and evaluation of actuarial models. SOA and CAS strictly prevent you from disclosing the content of the tests prior to the official public release of the questions. Scores are given on a pass or fail basis. Study the syllabus that accompanies each examination to prepare for the test. You can also download sample examinations off the SOA and CAS websites for further review.
Benefits
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The Bureau of Labor Statistics reports in their 2008-2009 Occupational Outlook Handbook that job prospects for actuaries are expected to be solid through 2016. In fact, jobs in the field are expected to grow at a rate of 24 percent from 2006 to 2016. The median annual income for actuaries is about $83,000. Recently graduated actuaries earn about $54,000 a year. Actuaries performing at the management level can earn an average annual salary above $125,000.
Considerations
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Although actuaries work across a variety of industries, the majority of actuaries work in the insurance industry. In fact, the Bureau of Labor Statistics reports that 6 out of 10 actuaries are employed at an insurance firm. Actuaries work with government and private pensions, on healthcare reform initiatives and at nonprofit organizations. You can also be self-employed and work as a contractor. After you graduate from college, check with your employer's human resources department to see if the company will pay your licensing examination fees. As you continue to pass the licensing examinations, you will increase your chances for promotion and could rise to be a Chief Financial Officer or Chief Risk Officer.
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