How to Become an Actuary

If you have a knack for numbers and data analysis, a career as an actuary may be a rewarding path.

According to the Bureau of Labor Statistics (BLS), actuaries earn a median annual salary of $120,000 as of May 2023, and the Bureau projects employment to grow by 22% from 2023-33.

However, becoming an actuary requires dedication, as the certification process is both rigorous and time-consuming.

In this guide, you’ll learn what actuaries do and discover the steps to enter this in-demand profession.

Actuaries play an important role in helping companies assess and manage financial risks. These professionals use data, statistical models, and probability theories to assess risk and offer financial insights that can help companies make informed, data-driven decisions.

As an actuary, you can work in industries such as insurance, finance, and healthcare, where you’ll help companies set insurance premiums, develop pension plans, and create risk management strategies.

Here are some common day-to-day tasks actuaries handle:

Although actuaries often work as part of a larger team, many of their daily tasks involve independent data analysis. Also, keep in mind that strong analytical skills and proficiency in probability software are essential for this career.

Becoming an actuary requires dedication and hard work. Not only do you need to complete a bachelor’s degree program, but you also need to pass a series of certification exams.

Here are some common steps you can take to become an actuary:

The typical first step to becoming an actuary is earning a bachelor’s degree. A bachelor’s in actuarial science program offers the most straightforward path, as its coursework will align best with the necessary requirements for future certification.

However, you can also consider earning a bachelor’s degree in math, finance, or statistics, which offer coursework that overlaps with actuarial training.

Whichever bachelor’s degree you decide to pursue, check its curriculum to make sure it offers the courses you need to meet certification requirements.

To become an actuary, you must pass a series of exams offered by the Casualty Actuarial Society (CAS) or the Society of Actuaries (SOA). The CAS oversees fields like auto and homeowner insurance, and the SOA certifies the life and health insurance fields.

Becoming a fully certified actuary requires passing several exams over the course of a few years. However, you can start working in the field after passing the first two preliminary exams: the Probability (P) exam and the Financial Mathematics (FM) exam.

Both exams are three hours long and consist of multiple-choice questions covering topics such as probability, calculus, and interest theory.

Note that you can take these exams while still pursuing your undergraduate degree.

An internship can give you valuable hands-on experience. It can also provide networking opportunities and bolster your resume.

Completing an internship can also give you a better idea of which career path within the actuarial field suits you best. Keep in mind that actuaries work across various industries, such as government, healthcare, and insurance.

The number of exams required for certification depends on whether you pursue CAS or SOA certification. You can expect to complete around 6-10 certification exams, each requiring hundreds of hours of studying.

Each exam covers a specific topic, such as actuarial statistics, life contingency models, and statistics and probabilistic models.

Oftentimes, employers will offer paid study time during work hours and may help cover the cost of your certification exams. Additionally, some organizations provide raises or bonuses once you obtain certification.

Insurance companies offer the highest number of entry-level actuary jobs. To find open positions, check the websites of health insurance, life insurance, and property insurance companies.

Make sure to tailor your resume for each position you are applying for, including all relevant training, certifications, and internships.

Keep in mind that many of the starting actuary positions include the phrase “entry-level” or “associate” in the job title. Also, in addition to searching for “actuary,” you can also try keywords like “analyst,” “data analyst,” and “business analyst” to expand your search.

Although a master’s in actuary science degree is not required to be an actuary, it can be beneficial for career advancement.

Completing a master’s degree program allows you to study and become highly trained in more specialized areas within actuary science.

Having an advanced degree may also increase your earning potential and better qualify you for management or senior positions.

After earning your bachelor’s degree, which typically takes four years, you can expect to spend another 4-7 years getting certified to work as an actuary.

How long it takes to finish your certification process also depends on the insurance areas you want to specialize in. For example, specializing in health insurance may require a different set of exams or an additional focus compared to life or property insurance.

It’s worth noting, however, that becoming an actuary is time consuming and requires a lifelong commitment to professional development and recertification to maintain your credentials and stay current with industry standards.

In 2023, actuaries earned a median annual salary of $120,000, according to the BLS. This is significantly higher than the national median annual salary of $48,060 for all occupations.

However, note that many factors can impact your salary, including the field you work in, your years of experience, and where you live.