To become an "Actuary", you must become an Associate, and ultimately a Fellow, of one of the professional societies by passing a series of examinations administered by them. The largest of the professional groups is the Society of Actuaries (SOA), the organization for actuaries working in life and health insurance, employee benefits, and pensions. The Casualty Actuarial Society (CAS) is the organization for actuaries working in automobile, fire, and liability insurance and workers' compensation. The American Society of Pension Actuaries is the organization for actuaries working in the pension field, in particular, those actuaries who certify to the federal and state governments that pension plans are sound.
Entry into the profession is very competitive and success in the field demands commitment and hard work during college and the few years after graduation when the actuarial exams are being taken. Potential employers suggest the minimum requirements for hiring are a 3.0 GPA or higher and at least 2 actuarial exams. The qualities sought in applicants are high technical ability, good communications skills, and a broad background including courses in mathematics, statistics, business, and the liberal arts.
The actuarial exams, administered by the SOA and the CAS, cover a variety of subjects of importance in the insurance industry. Exams cover calculus, linear algebra, differential equations, probability and statistics, operations research, numerical methods, interest theory, life contingencies, economics, finance, insurance law, as well as topics that are more specific to insurance. Recently, the SOA has divided the final part of the exam process into specialty tracks including pensions, individual life insurance, group life insurance, and investments.
The interdisciplinary Bachelors or Masters in Mathematics with actuarial concentration administered by the Department of Mathematics, is a good first step! The purpose of the program is to provide the broad quantitative background in mathematics, statistics, and related areas that are necessary for success in the actuarial profession and to provide the academic background needed to pass the first few actuarial exams. Students who complete the Mathematics program with actuarial concentration master the principles tested in examinations worth about half of the credits required to reach the Associate level, about two-fifth of the credits required for the Fellowship level. Fortunately, the first few exams are administered jointly by the SOA and the CAS so most students don't choose which career path to follow until they have some employment experience.
Actuarial Science students take a substantial number of mathematics and statistics courses as well as courses that cover actuarial topics and some courses i.e. finance, management and/or economics. In addition to the courses required for graduation, students should carefully consider electives that will coordinate with an actuarial career. In particular, additional courses from the School of Management, courses in economics, computer science, or courses in writing and communication are very helpful for an actuarial career. The goal of the program includes that students be well prepared for the exams they take, that they be knowledgeable about the career and in technical areas, and that they have a well-rounded education.
