How to Choose a Degree to Become an Actuary

Finding a School with an Actuarial Science Program

Look for a school that can prepare you for two or more actuarial exams. Most, actuarial science programs will prepare you for one or two actuarial exams, while some may even prepare you for three or four. Seek out a program that will prepare for you at least two exams in order to increase the return on your investment. For example, programs that boast preparation for two exams include Eastern Michigan University, Oakland University, and Aurora University. Appalachian State University will prepare you for three exams, and Roosevelt University will prepare you for four.

Seek out schools with classes in one or more VEE (Validation by Educational Experience) topic. When you apply to take CAS or SOA actuary exams (to become board certified), the first thing they will do is to verify your education in a screening called VEE (or Validation by Educational Experience). Before choosing a program, make sure that they cover at least one of these essential topics, such as applied statistics, economics, and corporate finance. Be sure the subject area (or areas) offered fit it with what you would like to do.

Determine the job placement rate of a program. By looking at a school’s website and by speaking to a recruitment representative for the actuarial science department, determine the overall job placement rate for a given program. The actuary science business is growing at a rate of 26% per year, so a strong program should have a job placement rate above 80%. You can locate these figures by visiting the school’s website or by speaking to a recruitment representative.

Consider tuition and financial aid. If you are pursuing an actuarial career, you are probably someone who already aims to manage risk. As such, important factors to keep in mind when selecting a university program include the cost of tuition (plus fees and living expenses), and your ability to obtain financial aid. Find out the tuition costs (and related expenses) for different schools and compare them. Also, if you will need financial aid, find out what percentage of students in your program are receiving financial aid, and look for a school will 85-90%. This information can be obtained from the school’s website or by speaking to a recruitment representative.

Think about geography. You will also want to consider the location of each school. On an economic level, a school’s location can impact your tuition costs (in-state vs. out-of-state), your travel costs (moving, going home for holidays, etc.), and your living expenses. Furthermore, you will want to be in an environment that works for you (city or country, mountains or ocean) so that you focus on your rigorous course of study.

Choosing a Math, Business, or Statistics Program

Consider a different major. A degree in actuary science is not required to take the needed exams and enter this field. Instead, you can enter any university program that offers a strong foundation in calculus, statistics, probability, economics, finance, management, and computer science. Consider majoring in math, business, or statistics.

Look for a program with an actuary emphasis. If you are leaning towards majoring in math, business, or statistics look for a program that offers an actuary emphasis, minor, or sub-focus. This will ensure that you will receive some of the core training necessary to pass a Validation of Educational Experience (VEE) and qualify for actuary exams later on.

Make sure they can prepare you for at least one actuarial exam. As a student in a math, business, or statistics major (as opposed to an actuary science major), not every aspect of your program will be geared towards passing future actuarial exams. However, your department should be aware of such requirements and be able to meet them. Look for information about actuarial exam preparation on the school’s website, or inquire about this from recruitment representative.

Work toward diversity. There can be one notable benefit to pursuing a degree in math, business, or statistics: background diversity. When a firm is hiring actuaries for its team, they will not want everyone to have the same exact educational background and training. Diverse backgrounds create a more fertile environment for ideas to flow.

Consider your strengths. Another benefit to entering a degree in math, business, or statistics is that it may give you more freedom to play on your strengths. Whereas a degree in actuarial science will give you a well-rounded encounter with many aspects of the field, a degree in math, business, or statistics allows you to specialize in an area where you excel.

Familiarize Yourself with the Board Certification Process

Select an actuary society. To work as an actuary, you must become board certified by either the Casualty Actuarial Society (CAS) or the Society of Actuaries (SOA), first as an “associate” and eventually as a “fellow.” If you understand how this process works, you will be better able to select the right degree program for you. The Society of Actuaries (SOA) works with actuaries in life/health insurance, employee benefits, and pensions. The Casualty Actuarial Society (CAS) works with actuaries in automobile, fire, and liability insurance and workers' compensation. There are other actuary societies (such as the Canadian Institute of Actuaries, or CIA), but these will require either the CAS or SOA exams.

Pass a Validation of Educational Experience (VEE). In order to qualify for these exams, a committee must verify your college course work in applied statistics, corporate finance, and economics. When you apply to take the first exam (via the websites for CAS or SOA), a appointed committee will look over your grades, transcripts, and possibly your test scores to assess whether or not you have been appropriately trained in these areas. Strong programs in actuary science (and related fields) will outline which VEE areas they offer, and will ensure a passable level of course work and preparation.

Complete courses in professionalism. If you have been trained in a specific actuarial science program, you may have already had courses in “professionalism” and “the fundamentals of actuarial practice.” If you do not have these specific courses on your transcript, you will need to complete them. These classes are offered by each actuarial society, both online and in person, and can range from $45 to $120 per course.

Pass several actuarial examinations. To become certified through the CAS, you must pass seven exams, whereas the SOA requires five exams. Each exam requires a great deal of preparation. It is highly recommended for you to obtain the official study manual for each exam ($75 and up), as well as additional materials like flashcards, practice tests, and study workbooks. The first four SOA Exams (P/1, FM/2, MFE/3F, and C/4) are administered alongside the CAS exams, and qualify for both the CAS and SOA organizations. The remaining first-tier exam is different for SOA and CAS. For SOA, the final exam is the MLC exam. For the CAS, the remaining exam is exam 3L. In order to become an associate with CAS, you must still take three more exams In order too become an associate with SOA, you will take just one more.

Become a “fellow.” Once you have obtained your associate certification, and spent a few years working in the field, you may wish to seek a fellowship through the CAS or SOA. This will improve your status as an actuary and lead to higher pay. In order to become a CAS fellow, you must pass two more exams. In order to become a SOA fellow, you must select one of five specific career tracks—advanced finance, financial theory and engineering, financial health and economics, financial reporting, or operations risk. The requirements differ for each track requires, with some requiring additional education modules, and others more exams.