Actuary - Job Description, Salary, Education and Career Guide for Becoming an Actuary

If you enjoy finding solutions and want a career that is both rewarding and challenging, becoming an actuary could be the path for you. Actuaries calculate the likelihood of future events with respect to the financial impact these events create. In other words, actuaries calculate risk. Actuaries solve problems and make determinations for insurance companies based on mathematical, statistical and economic models.
 
Some reasons you may want to consider becoming an actuary:
  • You want a career that is challenging
  • You want a career with a great salary
  • You want a career with job security
  • You want a career with many opportunities.
 

Job Description: Actuaries and What They Do

The United States Bureau of Labor Statistics reported that six out of 10 actuaries are employed in the insurance industry. Actuaries who do not work in the insurance industry may work for financial services companies, public agencies, private corporations or the government.
 
Actuaries who work in the insurance industry may choose a specialized field. Actuaries write insurance policies and explain their complex mathematical calculations to executives, policyholders, shareholders, or the public. Actuarial specialties include:
  • casualty insurance
  • health insurance
  • life insurance
  • property insurance.
 
Actuaries may also work to create retirement plans and pension plans for corporations and organizations. They can also work independently as consultants for companies.

Salary Guide

Actuary jobs are widely known to be well-paying and desirable. It is not uncommon for actuaries to earn between $150,000 and $200,000 annually. Entry-level actuaries earned a higher salary in 2002 than the average MBA graduate.
 
Publications like the Wall Street Journal and U.S. News & World Report have rated actuarial jobs as highly desirable in job surveys and project that the position will be in great demand in the future.
 
In May of 2006, the median annual salary for an actuary was $82,800.

Education and Training

Actuaries usually have a bachelor’s degree and must pass rigorous exams in order to become certified. The certification and examination process is time-consuming and may take between four and six years. The certification process with the Casualty Actuarial Society (CAS) is mostly examination-based, whereas the certification process of the Society of Actuaries (SOA) requires coursework, computer learning modules and examinations.
 
Prior to taking exams, a solid education in business and mathematics is a definite prerequisite to any actuarial career. Strong mathematical and financial backgrounds are essential. Your college or university may offer actuarial science classes and advanced math classes such as:
  • calculus
  • geometry
  • probability
  • statistics.
 
Pension actuaries must meet additional requirements stipulated by the Joint Board of the U.S. Treasury Department and the U.S. Department of Labor for the Enrollment of Actuaries. Pension actuaries confirm the financial status of pension plans for the Federal Government.

Prior Work Experience

A solid education and successfully passing actuarial exams are more important than prior work experience. However, experience within the insurance industry or in underwriting, accounting, marketing or advertising may be valuable both in passing actuarial exams and on the job. Communication skills are especially important for actuaries that work as consultants.

Career Advancement

Successful actuaries may be offered high-level management jobs or executive positions such as:
  • Chief Executive Officer
  • Chief Financial Officer
  • Chief Risk Officer.
 
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