How to Become an Insurance Actuary

Help analyze data as an insurance actuary

According to the Bureau of Labor Statistics, "Actuaries analyze data to estimate the probability and likely cost to the company of an event such as death, sickness, injury, disability, or loss of property. Actuaries also address financial matters, such as how a company should invest resources to maximize return on investments, or how an individual should invest in order to attain a certain retirement income level.Through their knowledge of statistics, finance, and business, actuaries assess the risk of events occurring and help create policies for businesses and clients that minimize the cost of that risk. For this reason, actuaries are essential to the insurance industry."

Instructions

1. Attain a bachelor's degree in mathematics, statistics or actuarial science. According to the Bureau of Labor Statistics, coursework in economics, applied statistics and corporate finance is a requirement for professional certification.

2. Exhibit strong computer skills and the ability to use spreadsheets and databases, as well as statistical software. According to Education-Portal.com, "Having good business knowledge and computer skills are becoming increasingly important for successful Actuaries. Actuaries need to understand how to use a spreadsheet, word processor and other software programs."

3. Apply for and pass the Actuary Licensure Exam. As stated by the Bureau of Labor Statistics, "Increasingly, companies are requiring potential employees to have passed the initial actuarial exam ... which tests an individual's proficiency in mathematics---including calculus, probability, and statistics before being hired." The exam is administered by The Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). Both Societies require a series of seven exams before awarding Fellowship status. This process can take four to eight years.

References

• Actuaries
• Actuary: Employment Info and Requirements for Becoming an Actuary