Actuarial FAQ
How do I become an actuary?
Actuaries come from various academic backgrounds. Some have degrees in actuarial science, while others have degrees in business, economics, statistics, mathematics, or the liberal arts. To join the profession in the United States, prospective actuaries must pass a series of exams hosted by the Society of Actuaries (SOA), the Casualty Actuarial Society (CAS), or the American Society of Pension Actuaries (ASPA). The exam process usually takes 6-10 years. During that time, prospective actuaries usually choose one of the major specialty areas: life insurance, property/casualty insurance, health, investments, or pensions.
When should I start taking exams?
Most begin in college, but there are also many career changers. Employers typically look for 1-2 exams passed for internships, 2-3 for entry-level.
How many exams should I have when I graduate college?
A good number would be 2 or 3 exams completed at graduation. Be careful not to take too many exams without work experience to complement it. Since you will be paid more as you pass more exams, employers won’t like having to spend a lot for someone who has little experience.
How long does it take to finish the exams?
Depending on the company, study habits, and personal goals, it can take between 6-10 years to complete the exams.
How can I prepare for exams?
There are courses at some universities that help you gain a basic understanding of the material on the exams, but it is not sufficient. You should have study manuals and practice exams, and always check online for released exam questions. You should finish as many practice sets as possible to understand the structure of the questions. You can also form study groups to discuss the more difficult problems.
Can you recommend any study manuals?
Depending on the exam, some study manuals are stronger than others. The most popular manuals come from ASM and ACTEX.
Where can I find help to edit my resume and cover letters?
If you’re a student, check your career center for reviewing opportunities. They may also have mock interviews to help you practice. Otherwise, there are forums online like actuarialoutpost.com where you can submit your resume (with your personal information redacted) for people to critique.
Which software skills do employers look for?
They want to see that you have a strong understanding of Excel (VLOOKUP and HLOOKUP, pivot tables, logic, etc.) and some background in programming. Typically object-oriented languages are sought after. If you’ve learned one, it shows that you have the potential to pick up more. Access is used extensively and it would be great to have an understanding of SQL. SAS is extremely powerful and probably preferred by many, and some other notables are R and SPSS.
Do I need to go to graduate school?
It is not required to pursue a degree higher than a Bachelor’s. Think of the exam process as a replacement for graduate school. However, some do obtain higher degrees to more easily climb into executive positions.