Actuary

What an Actuary Does

Companies depend on actuaries to help them prepare for and avoid risk, which can damage their reputations and of course, hurt profits. They collect and analyze data regarding all types of business risk, from employee retention and death to investment strategies to the economy. Actuaries usually work for insurance companies to develop plans and pricing based on a number of factors affecting risk. For example, an actuary working for a car insurance company would research driver age, occupation and sex to calculate risk. They also help businesses develop reasonable health insurance plans for their employees. Actuaries who work for financial service industries -- and not insurance companies -- manage and analyze credit, pension plans, securities, income, stocks, profit-sharing and related plans, transactions and agreements. Some actuaries work for themselves, consulting for business and companies and managing their own companies.

How to Become an Actuary

If you want to become an actuary, a bachelor's degree in a related field, like math, statistics, finance, economics or business is preferred. If you choose to major in a different field, you will still have to take courses in corporate finance, applied statistics and economics, which will help you in your career and which can be required for certification, in the case of corporate finance. Many companies require new hires to have passed the actuarial sciences exam, offered by the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). These societies actually offer seven exams, but only the first one needs to have been passed for most entry-level jobs, and it tests students and recent graduates on their math skills. The traditional actuary career path starts with an entry-level job working in many different departments to learn the field, before obtaining management or supervisory positions.

Career Outlook for Actuaries

Just over half of all actuary jobs were with insurance carriers in May 2008, while others worked for consulting services and insurance brokers and agents. Most of the new jobs created will be with consulting firms, and insurance carriers may actually be downsized. There is still expected to be a 21% increase in employment for actuaries, which is higher than average for other occupations. New graduates who have passed their certification exams and who have completed internships working with actuaries will have the best chance for getting jobs, especially if they can demonstrate their talent in mathematics. As of May 2008, the median annual wage for actuaries was $84,810, while the middle 50% earned between $62,020 and $119,110. The average starting salary for bachelor's degree-holding professionals was $56,320 in July 2009.