How to Become an Actuary

If you absolutely adore mathematics and are undaunted by the thought of taking biannual examinations for a decade, a career as an actuary may be perfect for you. Actuaries evaluate past and present insurance statistics to estimate future financial risks. On the basis of their findings, they calculate insurance premium rates and also design or modify policies to keep their companies profitable and competitive.

Difficulty:

Challenging

Instructions

Things You'll Need

• Financial Calculator
• Watches With Alarm
• Career Counseling
• Financial Software
• Investment Software
• Online Career Search
• Spreadsheet Softwares

1. Take advanced mathematics courses in high school and also advanced placement (AP) courses, if possible. Ask your high school guidance counselor to recommend colleges with outstanding mathematics programs.

2. Obtain a bachelor's degree in mathematics, statistics, actuarial science, economics, accounting or finance.

3. Make certain you receive excellent training in calculus, probability and statistics. Take liberal arts courses that will sharpen your communication and interpersonal skills.

4. Understand that you will have to take a series of biannual actuarial exams that can take up to 10 years to complete, depending on your ambition. Preparation will involve mostly independent study, with perhaps a few seminars to attend.

5. Check the Web sites of the Society of Actuaries (soa.org), the Casualty Actuarial Society (casact.org) and the American Society of Pension Actuaries (aspa.org) for information on exams and the field.

6. Take at least two exams before you graduate to increase your chances of entry-level employment in a tight job market. The first few exams do not require you to have an actuarial specialty.

7. Apply for jobs as soon as you pass. Your first job will likely be a lengthy internship designed to familiarize you with various operations in an insurance company. This will afford you the opportunity to decide on a specialty, such as life, health, property and casualty, or financial planning and investment.

8. Study regularly so that you can successfully complete the remaining exams and receive your professional status. Your aim is to pass the exams on schedule so that you will reach an actuary's associate (beginner) level within four to six years and a fellowship (professional) level a few years later.

Tips & Warnings

• Raises and job advancements can occur as you continue to pass your exams; remember that actuaries work mostly for insurance companies.

• An actuary must always be aware of any changes in the economy.

• Become proficient with all computer software programs used by actuaries.

• Learn how to juggle school and work while you are still in college. The actuarial exams are very difficult, and you will have to study for them while working at a full-time job.