Despite the fact that employers are supportive during the exam process, home study is necessary and many actuaries study for months to prepare for each exam. The process for gaining certification in the Casualty Actuarial Society is predominantly exam-based. To reach the first level of certification, the Associate or ACAS level, a candidate must complete seven exams, attend one course on professionalism and complete the coursework in applied statistics, corporate finance, and economics required by both the SOA and CAS.
This process generally takes from 4 to 8 years. The next level, the Fellowship, or FCAS level, requires passing two additional exams in advanced topics, including investment and assets and dynamic financial analysis and the valuation of insurance. Most actuaries reach the fellowship level 2 to 3 years after attaining Associate status. The certification process of the Society of Actuaries blends exams with computer learning modules and coursework. To reach the Associate or ASA level, a candidate must complete the initial five exams, the coursework in applied statistics, corporate finance, and economics required by the SOA and CAS, eight computer modules with two subsequent essays, and a seminar in professionalism.
To attain the Fellowship or FSA level, a candidate must pass two additional exams within a chosen specialty and must complete three computer modules, a seminar in professionalism, and a course in fellowship admissions. Attaining Fellowship status usually takes an additional 2 to 3 years after becoming an Associate.
Specific requirements apply to pension actuaries, who verify the financial status of defined benefit pension plans for the Federal Government. These actuaries must be enrolled by the Joint Board of the U. Treasury Department and the U. Department of Labor for the Enrollment of Actuaries.
To qualify for enrollment, applicants must meet certain experience requirements and pass two exams administered by the SOA, as stipulated by the Board. Other Skills Required Other qualifications Actuaries should have strong computer skills and be able to develop and use spreadsheets and databases, as well as standard statistical analysis software. Companies also increasingly prefer well-rounded individuals who, in addition to having acquired a strong technical background, have some training in business and possess strong communication skills.
Good interpersonal skills also are important, particularly for consulting actuaries. To perform their duties effectively, actuaries must keep up with current economic and social trends and legislation, as well as developments in health, business, and finance that could affect insurance or investment practices.
Actuaries - What They Do - Page 2. Students who major in Actuarial Science will receive rigorous training in the mathematics and statistics needed for the design, financing, and operation of all types of insurance plans, pension plans and benefit plans.
Students will acquire a broad background in economics, finance, and risk It is very common for Statistics departments to be separate at schools with graduate programs, but many undergraduate-only institutions include statistics These four needs can be roughly related to the broad subdivision of mathematics into the study Statisticians work with theoretical and applied statistics in both the private and public sectors.
The core of that work is to measure, interpret, and describe the world and human activity patterns within it. Toggle navigation. Although actuaries often work for insurance companies, they're also employed by consulting firms, government entities, employee benefits departments, hospitals, banks — and even investment firms. Any organization that needs to manage financial risk might employ an actuary. This could include making sure a pension fund's assets match its liabilities, working for the Social Security Administration SSA , or analyzing a set of investment options to determine which one is more likely to be profitable.
Most actuaries, no matter their specialty, do the following with each project:. Actuaries help leaders make strategic decisions and consumers prepare for their future. The field in which actuaries work is known as actuarial science. It is a discipline that assesses financial risks in the insurance, finance, and other fields using mathematical and statistical models.
Actuarial science deals with evaluating risk and maintaining the economic stability of an organization or business. It involves the use of mathematics, statistics, and probability principles to anticipate undesirable future events and take preventive measures. The road to becoming an actuary begins with a college degree, Canfield says. Mathematics is the foundation and principal discipline," he adds, "however, it is also critical to have sound knowledge of business management, risk management, finance, and forecasting.
Finally, depending on your specialty, there are credentialing exams to pass. When it comes to compensation, actuaries outrank other similar occupations including mathematician, statistician, financial analyst, and accountant. An actuary is a business professional trained to model and predict the financial future of a company based on risk. When life offices are bought and sold or life funds merged, actuaries tend to be retained by both sides.
General insurance actuaries are also to be found in reinsurance and broking operations. As there are many different factors that can affect the size and number of claims, general insurance companies employ actuaries to assist with their financial management, in particular in connection with premium rating and reserving. Actuarial and statistical techniques are used extensively in the analysis of often substantial amounts of available data.
Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. The Balance Insurance. Table of Contents Expand. Table of Contents. What Is an Insurance Actuary? How Insurance Actuaries Work. Requirements for an Insurance Actuary. By Janet Hunt Full Bio LinkedIn Twitter Janet Hunt is an expert in car insurance, homeowners insurance, and health insurance with over 20 years of experience covering trends, regulations, and writing company reviews.
Her lengthy career in insurance includes stints in customer service and selling personal lines of insurance. She earned her Property and Casualty license in Learn about our editorial policies. Article Fact Checked August 05, Reviewed by Thomas J. Article Reviewed October 26,
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