Actuaries calculate the likelihood of certain events occurring using statistical data. A person interested in pursuing an actuarial career should have a strong understanding of mathematics, and actuaries must typically hold a bachelor’s degree. Additionally, in some countries, regulatory agencies or industry associations administer an actuarial examination, which people must pass in order to work as actuaries.
Graduation from high school is usually the first step in an actuarial career. Some colleges offer actuarial degree programs, and to be admitted, high school students must have above-average math grades. Other actuaries have earned a bachelor’s degree in mathematics, finance, or a related field. Some companies require actuary candidates to have a postgraduate degree in statistics, risk management, or a finance-related field.
Prospective actuaries can work as interns for insurance or finance companies before graduating from college. Many of these companies hire a large number of unpaid interns and use internships to find new employees. Students can gain some insight into actuarial work through internship programs, and those who impress during these programs are sometimes offered job offers, though these offers are usually conditional on the student graduating from college.
Actuaries must be licensed or certified in many countries, and the process begins when college graduates take an actuarial training course offered by a government agency or an industry association. Students learn risk management concepts and risk calculation techniques during the course. The course usually concludes with an examination, after which students can apply for an actuarial license if they pass. These licenses do not expire in some countries, but in others, licensed actuaries must attend continuing education classes on a regular basis to keep their licenses active.
Because insurance companies are primarily involved in risk management, they employ a large number of actuaries. Gaining experience as an insurance agent or policy underwriter can help someone who wants to pursue an actuarial career. People in these positions aren’t responsible for calculating risk, but they do gain a better understanding of the process because insurance applications are approved or denied in part based on the information on actuarial charts. Many countries require insurance firm employees to be licensed, which means that someone pursuing an actuarial career may have to pass both an insurance and an actuarial exam.