From developing insurance policies to estimating disaster costs, actuaries play an essential role in finance and business. They work with data to measure and manage risk in various settings, while also earning an above-average salary and enjoying a strong job outlook.
Individuals interested in how to become an actuary need to understand the basic steps to build and excel in a career in the field. One essential step is completing an education program such as a master’s degree in actuarial science—a finance discipline that uses math to evaluate risk.
What Does an Actuary Do?
Actuaries use mathematics, statistics, probability, and theoretical finance to determine the economic and financial costs associated with risk and uncertainty. Their daily duties and responsibilities may include some or all of the following:
- Compiling statistics and other data
- Using existing insurance policies and liabilities to determine the needed cash reserves that their employers should have on hand
- Creating graphs, tables, and other reports to explain proposals and calculations
- Estimating the probabilities and costs associated with various events, including illnesses, injuries, death, accidents, or disasters
- Explaining findings and calculations to others, such as government officials, shareholders, clients, and executives
- Using various database software, including modeling and statistical software
Where Do Actuaries Work?
Actuaries work for various organizations, including medical insurance providers, life insurance providers, property/casualty insurance providers, professional services firms, and local, state, or federal government agencies. They work with accountants, finance specialists, underwriting departments, and teams of all sizes. Actuaries often work in offices, but some travel may be required, particularly for those who work with consulting firms rather than single employers.
Steps to Become an Actuary
Several steps are involved in becoming an actuary. The steps provide a solid path to follow for those who want to use their mathematics and statistics skills to pursue an interesting and challenging career.
1. Earn Your Degrees
Although individuals can gain employment as an actuary with a bachelor’s degree, master’s degrees are becoming increasingly preferred, particularly in high-profile, high-stress roles. Earning a bachelor’s degree in actuarial science, economics, business, or finance takes about four years to complete, compared with one to two years for a master’s degree in actuarial science.
Master’s degree programs can cover a wide range of topics, including short- and long-term actuarial modeling, advanced actuarial statistics, statistics for risk modeling, and scientific and technical communication.
2. Pass Exams and Earn Certifications
To become certified, actuaries must pass a series of up to 10 exams, depending on the designations they choose—the passing of which results in specific credentials. While actuarial certifications aren’t required for entry-level actuary roles, many employers expect actuaries to have passed some of the exams during their degree programs and to continue to pursue certification once hired.
Popular options include the associate of the Society of Actuaries (ASA), chartered enterprise risk analyst (CERA), and fellow of the Society of Actuaries (FSA), all credentials offered by the Society of Actuaries (SOA).
Another popular society of actuaries, known as the Casualty Actuarial Society (CAS), offers the associate of the Casualty Actuarial Society (ACAS) and fellow of the Casualty Actuarial Society (FCAS) designations.
3. Join Actuarial Societies
Actuarial societies are excellent resources for aspiring actuaries to not only earn credentials but also network with experienced professionals, access job boards, and stay updated with industry trends. Two of the best professional actuarial societies include the SOA and CAS. Both offer ample resources for education and engagement.
4. Build Actuarial Skills
Becoming an actuary also requires building the necessary skills to thrive in the role. Technical skills, including computer programming, spreadsheet applications (such as Microsoft Excel), and database software use, are essential for actuaries. Other skills, including strong mathematics, statistics, and probability calculating abilities, are required. Critical thinking and written and oral communication skills also serve actuaries well throughout their careers.
5. Find an Actuarial Internship
Though an internship isn’t necessary, finding one in a field such as risk management or data analytics while completing your master’s degree can benefit your career. Actuaries must typically have a few years of experience in a related field, and an internship can give you a head start.
6. Apply for Your First Job
After completing your master’s degree, obtaining certifications, completing an internship, and building your actuarial skills, you can search for a position with a business or insurance company. Though an entry-level position is typically the simplest to achieve immediately after graduation, a master’s degree may prepare you for certain mid-level positions if you have experience working in statistics- or mathematics-based business roles.
How Much Does an Actuary Make?
Actuaries earn much higher salaries than the national average. According to the U.S. Bureau of Labor Statistics (BLS), actuaries earned a median annual salary of $120,000 as of May 2023. Actuaries’ median salaries are quite similar across the different industries in which they work.
Actuary Job Outlook
The BLS also projects employment of actuaries to grow by 22% between 2023 and 2033, much faster than the average for all occupations. As technologies improve and insurers continue to look for ways to reduce costs while providing the coverage their clients need, more actuaries will be needed.
Take the First Step in Your Actuary Career
Anyone with an affinity for mathematics, statistics, and probability may want to consider learning how to become an actuary. Numerous fields and industries depend on actuaries’ skills and knowledge to manage risk, analyze data, and evaluate the effects of changing regulations.
Bryant University’s Master of Science in Actuarial Science is an online, asynchronous program—meaning that you can complete the classes on your own schedule—with five yearly start terms. Beyond the flexibility it offers, the program gives students access to multiple certified actuaries on the university’s faculty.
Explore Bryant’s actuarial science program as your first step toward a challenging, in-demand career.