How to Become an Actuary

One such career is as an actuary. It's a job that may be heavily associated with insurance but can be far more wide-reaching than that. If you put in the work needed to become a professional actuary, you could find yourself in a lucrative, stable career. But be warned: It's a lot of work.

How to Become an Actuary

Actuaries are expected to be in high demand over the coming years, so it's smart to get prepared for it sooner than later. Becoming an actuary is a multi-step process that is still ongoing even at the beginning of your actual career.

Here are nine steps on how to get your start as an actuary.

1. Get Relevant Education in High School and College

Having at least a bachelor's degree is a must if you're looking to get hired as an actuary, but it could be argued that your relevant education starts even before college. You should be taking math courses all four years of high school, and if you can get into an AP math class, you should.

Depending on the college you attend, it's possible that there may be an actuarial program to major in. If not, that's OK. Majoring in actuarial science can certainly help, but it's not a stiff requirement if you have a similarly relevant education. A major relating to mathematics, finance, or economics would be perfect.

Because so much math is involved, (even if your major isn't literally math) you should still be finding ways to take classes in advanced algebra and calculus. If your school doesn't have actuarial science majors but does have some classes on it, make sure to take them.

Computer science courses are crucial as well, considering how much of the actuary's job is working with software and spreadsheets. Communications classes can be helpful, as can liberal arts courses to ensure you get a well-rounded education.

2. Get Involved in Extracurricular Activities

It's likely been hammered home in your head from an early age to make sure you have a ton of extracurriculars to help you get into college, but it can also be helpful to your career too.

The right set of extracurriculars can showcase your ability to balance an intense workload, and that can be a real asset to you when searching for an internship and your first job in the field.

3. Develop Technical Computer Skills

Computer science courses in college will certainly give you a small advantage, but if you want to really become well-versed in the software you'll be using, you'll have to go outside of generic classes.

If you can find courses on specific programs like Excel or programming languages like SQL, whether at your school or outside of it, they're worth taking. And in your free time, it could help to tinker around with them.

4. Take and Pass 2 Actuarial Exams Prior to Graduating

Actuaries will, throughout their careers, need to pass several exams to become a full-fledged actuary. It's recommended that by the time you graduate college you take two of these exams.

The two exams are the Probability Exam (aka Exam P) and the Financial Mathematics Exam (aka Exam FM). Although each is, in a way, the beginner's exam for actuaries, and is three hours long, they require hours upon hours of studying.

Topics that are covered in your general coursework include calculus and probability, as well as risk management. If there are topics you're not as familiar with because you're not in an actuarial sciences program, that's even more studying you'll need to do. With research and practice exams all factored in, you're likely looking at hundreds of hours of studying—per exam.

5. Get an Actuarial Internship

In addition to having passed the first couple of exams, you should have an internship or two under your belt before you graduate. Becoming an actuary, though, doesn't leave a lot of room for free time.

With an impressive resume of relevant courses, extracurriculars, and maybe even an exam passed, you can acquire a solid actuarial internship that requires working on a team with established actuaries. This helps you gain work experience and build connections—both integral to your resume—and helps you develop a sense of what the day-to-day role of an actuary actually is.

Ideally, if possible your two pre-graduation internships should be in different environments. For example, if your first was with an insurance carrier, see what other industries are looking for actuarial interns. This gives you a more well-rounded view of what an actuary does, and may even give you a clearer picture of where you want to do your work.

6. Get Your First Entry-Level Actuarial Job

You've made it this far. You've graduated college, passed a couple of exams or more, and completed internships. Now, it is time for you to make your way into the working world and find a job in your field.

Certainly, this is easier said than done, but if you've put in the work, studied hard for your exams, and paid close attention during your internships (and can expertly showcase all this in an interview), you just may find your first entry-level position.

7. Choose Between SOA and CAS

Concurrently with finding a position, you'll also be determining what direction you want to go in as an actuary. The field you wish to work in as an actuary will determine which association you want to be a part of for your career: the Society of Actuaries (SOA), or the Casualty Actuarial Society (CAS).

The primary difference between the two organizations is the field actuaries are employed in. The CAS is generally for property and casualty insurance, otherwise known as P&C. The SOA is more geared toward health insurance, retirement, and life insurance. Each association also brings with them different exams you will have to take after the first few general exams you already took.

8. Take VEE-Approved Courses for Requirement

Either during college or after (preferably during), and regardless of association, you will need to take courses on Validation by Educational Experience (VEE) topics.

You are required to have VEE-approved courses on topics like economics, accounting, finance, and mathematical statistics. Courses specifically approved for this can be found online.

In addition, you will need to have at least two exams passed before putting in a request for VEE credit.

9. Continue Your Exams

You still have exams to take and prepare for, even while you're in the midst of a career. Luckily, many employers will actually sponsor your exams to help you officially become a member of the association you choose.

To become a member of the SOA, or an Associate of the Society of Actuaries (ASA), you'll need to take exams on both long and short-term actuarial mathematics, statistics for risk modeling, and predictive analysis. These are all in addition to the initial exams and VEE requirements.

If you complete all of these exams, and some SOA e-learning courses/modules, you have the opportunity to become a Fellow of the Society of Actuaries (FSA). You can take one of six tracks to become an FSA: Corporate Finance and ERM (Enterprise Risk Management), Quantitative Finance and Investment, Individual Life and Annuities, Retirement Benefits, Group and Health, and General Insurance. All of these have their own unique sets of exams and courses.

If you wish to become an associate of the CAS, other exams you'll have to take involve modern actuarial statistics, ratemaking and estimating claim liabilities, regulation and financial reporting, financial risk, and more.