Profession as Actuary?

Question

Hi, I am pursuing a 3-year degree in Mathematcial Science (emphasis on Stats). I will be doing second Honors degree in Economics.

Just wondering....is double Major in Math and Economics a good platform to pursue a career in Acturial Science ???

Or do I need a degree in Acturial Science ?

Thanks

Answer 1

An actuarial science degree is not necessary to enter the actuarial career. I am currently an actuary (with my ASA), and I majored in mathematics in college. There was no actuarial science program in my school, and virtually no one else had heard of the actuarial profession.

That being said, as long as your grades are decent in some mathematically-related field, your scholastics should be ok for the profession. After that, the main thing you need to concentrate is on the actuarial exams. If you absolutely want to pursue the double major, then by all means, go ahead, but I would actually recommend you taking 1-3 exams in college rather than double majoring in Economics and Math. For an entry-level position, I would imagine companies would find a 3-exams math major more valuable than a 0 or 1 exam math & economics major.

Getting a focus in economics will be helpful, though, since there are some topics in the actuarial education system that can be satisfied while taking classes in college. These are called Validation by Education Experience (VEE) topics. Before you leave college, try to make it a point to get at least a semester of each of the following topics done: Macroeconomics, Microeconomics, Corporate Finance (you'll need 2 semesters to satisfy this requirement), Regression and Time Series. If you don't finish these before college is done, that's ok - there will be other chances. But it might help in your job search if you can market yourself with having the VEE topics satisfied. You'll at least have the upper hand just knowing that there are VEE topics.

Answer 2

You are ok with the mathematics degree. The next step is passing the exams.

Answer 3

According to the U.S. Department of Labor, Bureau of Labor Statistics' Occupational Outlook Handbook
http://www.bls.gov/oco/ocos041.htm

Actuaries need a strong background in mathematics. Applicants for beginning actuarial jobs usually have a bachelor’s degree in mathematics, actuarial science, statistics, or a business-related discipline such as economics, finance, or accounting. About 100 colleges and universities offer an actuarial science program, and most offer a degree in mathematics, statistics, economics, or finance. Some companies hire applicants without specifying a major, provided that the applicant has a working knowledge of mathematics, including calculus, probability, and statistics, and has demonstrated this knowledge by passing one or two actuarial exams required for professional designation. Courses in economics, accounting, finance, and insurance also are useful. Companies increasingly prefer well-rounded individuals who, in addition to having acquired a strong technical background, have some training in liberal arts and business and possess strong communication skills.

In addition to knowledge of mathematics, computer skills are becoming increasingly important. Actuaries should be able to develop and use spreadsheets and databases, as well as standard statistical analysis software. Knowledge of computer programming languages, such as Visual Basic, also is useful.

Two professional societies sponsor programs leading to full professional status in their specialty. The Society of Actuaries (SOA) administers a series of actuarial examinations in the life insurance, health benefits systems, retirement systems, and finance and investment fields. The Casualty Actuarial Society (CAS) gives a series of examinations in the property and casualty field, which includes fire, accident, medical malpractice, worker’s compensation, and personal injury liability.

The first four exams in the SOA and CAS examination series are jointly sponsored by the two societies and cover the same material. For this reason, students do not need to commit themselves to a specialty until they have taken the initial examinations, which test an individual’s competence in probability, calculus, statistics, and other branches of mathematics. The first few examinations help students evaluate their potential as actuaries. Many prospective actuaries begin taking the exams in college with the help of self-study guides and courses. Those who pass one or more examinations have better opportunities for employment at higher starting salaries than those who do not.

After graduating from college, most prospective actuaries gain on-the job experience at an insurance company or consulting firm, while at the same time working to complete the examination process. Actuaries are encouraged to finish the entire series of examinations as soon as possible, advancing first to the Associate level (with an ASA or ACAS designation) and then to the Fellowship level (FSA or FCAS designation). Advanced topics in the casualty field include investment and assets, dynamic financial analysis, and valuation of insurance. Candidates in the SOA examination series must choose a specialty—group and health benefits, individual life and annuities, pensions, investments, or finance. Examinations are given twice a year, in the spring and the fall. Although many companies allot time to their employees for study, home study is required to pass the examinations, and many actuaries study for months to prepare for each examination. It is likewise common for employers to pay the hundreds of dollars for examination fees and study materials. Most actuaries reach the Associate level within 4 to 6 years and the Fellowship level a few years later.

Specific requirements apply to pension actuaries, who verify the financial status of defined benefit pension plans for the Federal Government. These actuaries must be enrolled by the Joint Board of the U.S. Treasury Department and the U.S. Department of Labor for the Enrollment of Actuaries. To qualify for enrollment, applicants must meet certain experience and examination requirements, as stipulated by the Board.

For information about actuarial careers in life and health insurance, employee benefits and pensions, and finance and investments, contact:

Society of Actuaries (SOA), 475 N. Martingale Rd., Suite 600, Schaumburg, IL 60173-2226. Internet: http://www.soa.org

For information about actuarial careers in property and casualty insurance, contact:

Casualty Actuarial Society (CAS), 1100 N. Glebe Rd., Suite 600, Arlington, VA 22201-0425. Internet: http://www.casact.org

The SOA and CAS jointly sponsor a Web site for those interested in pursuing an actuarial career. Internet: http://www.BeAnActuary.org

For general information on a career as an actuary, contact:

American Academy of Actuaries, 1100 17th St. NW., 7th Floor, Washington, DC 20036. Internet: http://www.actuary.org