Actuaries need to have a solid background in advanced mathematics.
Becoming an actuary requires that students have a solid background in business, economics and advanced mathematics. Actuaries often specialize in a particular area such as property insurance, life insurance or pensions. There are several examinations that an actuary may take, including a basic actuary certification and tests to become a specialist in different fields.
Requirements
The decision to become an actuary should be made as early as possible in order to prepare for the career, preferably while you are attending high school or college. Students considering a career as an actuary should begin by taking courses in advanced mathematics, computer science and economics, according to the website Be An Actuary. Many students participate in actuary internships while in high school or college. An undergraduate actuary degree usually requires 120 to 136 credit hours in actuary science.
Certification
Actuaries should become members of the Society of Actuaries (SOA) and/or the Casualty Actuarial Society (CA, two organizations that provide certification that may be required by employers. These two organizations administer actuary certification examinations that must be passed in order to meet the high professional standards demanded of working actuaries. Applicants for certification can also qualify to take the SOA or CAS certification examinations by submitting evidence of applicable work experience.
Degree Programs
Earning an actuarial degree generally takes at least four years of college attendance. The curriculum for an actuarial degree consists of a variety of topics, but the website Education-Portal says it generally requires courses in probabilities, including random variables and theory; risk management, including spreading risk and retention funds; and calculus, including variable functions and volume integrals. In order to become SOA certified, applicants must complete at least 24 semester hours in actuarial science and mathematics, according to Education-Portal.
There are 21 colleges in the United States and Canada that have been honored by the SOA as "Centers of Excellence" for their actuarial training, including the University of Connecticut and University of Iowa.
Certification Exam Topics
Certification exams consist primarily of multiple choice questions and can last between three and three and a half hours. These examinations are the Probability Exam, Financial Mathematics Exam, Financial Economics Exam, Life Contingencies Exam and an Actuarial Models Exam. Probability exam applicants must have at least a basic knowledge of calculus, probability, insurance and risk management. The Financial Mathematics Exam requires a basic knowledge of interest theory and derivative securities. The Financial Economics Exam tests applicants on their knowledge of interest rate models, rational valuation, simulation and risk management techniques. The Life Contingencies Exam tests cover different topics depending on whether the exam is taken by the CAS or SOA. The Construction and Evaluation of Actuarial Models Exam is administered jointly by the CAS and SOA.
Tags: advanced mathematics, risk management, actuarial degree, Actuarial Models, Actuarial Models Exam, actuary certification