Actuary

What an Actuary Does

Being an actuary is a great career for math majors, as the occupation uses lots of complicated math skills, including statistics. Actuaries are responsible for evaluating and forecasting risk for companies' finances and profitability and also for insurance companies wanting advice on declaring premiums. The actuaries who work with insurance carriers -- which is the majority of actuaries -- work on property and casualty insurance and also life insurance and health insurance. They create highly scientific reports estimating potential losses and risks regarding car accidents, lifestyles, age, sex and more. Actuaries who work for companies evaluate things like credit, pension plans, securities, retirement, investments, shareholders and stocks, and more. Some actuaries work in-house for a company, while others work in their own firms. Others work as independent consultants, although these actuaries may often put in more hours and have more stress as they recruit their own clients.

How to Become an Actuary

Getting an undergraduate degree in a field like mathematics, finance or statistics can help you become an actuary. Even if you choose a major other than math, you will need to take lots of math courses to prepare you for the field. And if you are a math major, you should take some courses in corporate finance, economics, and statistics to round out your education and prepare you for the nuances of the occupation. Internships are also very valuable in this field and can help you find a job much more easily than if you just have a college degree. Consider becoming certified by the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS), which grant full professional status, after you have determined your specialty. These certifications require the passing of seven exams. Once you have passed the first two exams -- at least -- you have a better chance at asking for a higher starting salary, even if you're applying for your first job.

Career Outlook for Actuaries

Just over half of all the 19,700 actuaries working in the United States in 2008 worked for insurance carriers. But the majority of the job growth will actually come from other industries, in financial services and consulting in particular. Actuaries should see a 21% increase in job growth through 2018, which is much faster than the national average for all other occupations. That is an increase in 4,200 jobs. The National Association of Colleges and Employers estimated in July 2009 that the average starting salary for an actuary with a bachelor's degree was $56,320. The median annual salary for actuaries in 2008 was $84,810, according to the U.S. Bureau of Labor Statistics, and the middle 50% earned between $62,020 and $119,110. Those with internship experience and who have passed at least two of the certification exams may be able to demand a higher starting salary, and after gaining more work experience, you will have better chances at getting promoted.