A business professional that analyzes risks and their financial consequences is an actuary. In order to study the uncertain future events, actuaries are going to use financial theory, mathematics and statistics, especially those that are of concern to pension programs and insurance companies. Actuaries can work within many types of business; however, they’ll mainly work for insurance companies.
Other companies that you can find actuaries include:
- Consulting firms
- Consulting firms
- Investment firms
- Large corporations employee benefits departments
Essentially, you can find actuaries in essentially any business that has the necessity to manage financial risks. An actuarial career is something that can be described as a career in business that includes a mathematical basis rather than a technical mathematical career.
Why Become an Actuary
Interesting and challenging is just a couple of ways you’ll hear actuaries describe their work, and they’ll most often enjoy an environment that’s very excellent. An actuary is one of the top jobs that someone can work within, based upon many different factors by the Jobs Rated Almanac. An actuarial profession, according to many different studies, is much more open to under-represented minority groups and women.
An actuarial career is one that’s in high demand, and that’s represented by the starting salary range of $45,000-$50,000. The increments of salary will be based upon both the number of exams that have been passed along with experience. The increment amounts can be extremely large and there are a significant number of actuaries that are earning within triple digits. Those graduates that will receive the majority of job offers, and are considered well qualified, are the ones that have passed at least one examination and a 3.2 GPA.
Becoming an Actuary
In order to become an actuary, you’ll need to become an Associate, and then ultimately a Fellow, through one of the two professional societies through the passing of a series of exams that are administered through them. The two certifying agencies are the Casualty Actuarial Society and the Society of Actuaries. For those that work in the pension field, especially those that want to certify to the state and federal governments, will go through the American Society of Pension Actuaries.
The others will fall under either of the other two bodies, and the breakdown is as follows:
- Casualty Actuarial Society – Those that work within the property and casualty field, including, auto insurance, home insurance, fire insurance, workers compensation insurance and liability insurance
- Society of Actuaries – Those that work within the employee benefits, pensions and life and health insurance fields
The qualities that are sought with the actuarial candidate will be good communication skills, a high technical ability level, along with a broad background. The exams administered by the agencies are going to cover subjects over a wide variety of subjects that are important to the insurance industry. Your exams are going to cover such subjects as, risk management, probability, life contingencies, interest theory and other topics that are more specific to the insurance industry.
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