What is an ACTUARY? It’s one of the best occupations YOU’VE never heard of.
The profession has been called one of the best to enter because of its relatively low-stress environment, and they are usually given a comfortable amount of autonomy while working. According to the U.S. Bureau of Labor Statistics, about 60% of actuaries are employed by insurance companies, which are relatively stable, thus ensuring a steady demand for actuaries. Plus they are well compensated and usually only hold a bachelor’s degree.
Actuaries are essentially mathematicians that calculate the risk of certain events and the financial implications as a result of those events. The types of events that actuaries analyze determine which of the two main directions they are in involved with. Actuaries that analyze predictable events, such as retirement, illness, and death are considered to be life, health and welfare, or pension actuaries. Those that analyze unpredictable, catastrophic events such as automobile accidents and property loss are known as property and casualty actuaries. Actuaries analyze these events using their background in mathematics, statistics, economics, finance, and business.
Actuaries only need a bachelor’s degree in mathematics, statistics, actuarial science, or a related discpline because the profession is centered around a series of examinations, which culminate in a special designation acknowledged internationally. These examinations test the candidate’s knowledge of probability, statistical modeling, and financial analysis within the context of actuarial work. Completion of all the examinations typically takes a decade, as actuaries study for exams while working. Although entry-level actuaries are not required to complete an exam to begin working, students are increasingly entering the profession with one to two exams completed.
With an increasing number of people going into retirement, as a result of the Baby Boom, actuaries will continue to be in great demand for years to come. It is indeed a challenging but extremely rewarding career to consider.
