How to Become an Actuary

Actuaries specialize in calculating and managing the financial impacts of risk and are typically employed in insurance and finance. These mathematically proficient and detail-oriented professionals estimate the likelihood and potential costs of future events and help their employers plan to meet those possible costs.

The profession's risk calculation and management principles derive from actuarial science. You can earn degrees in this area or study accounting, mathematics, or a similar subject.

Actuaries have high earning potential and excellent job prospects. Learn how to become an actuary in this career guide.

Steps to an Actuary Career

Required Education for an Actuary

As you research how to become an actuary, you will find that the required education is less about hard requirements and more about what will best prepare you to enter and advance in the field.

For instance, neither the SOA nor the CAS specifically require you to hold any particular degree to qualify for their actuarial certifications. Instead, both organizations use what is known as "verification by educational experience" (VEE). Associate-level VEE requirements cover coursework in:

• Accounting and finance
• Economics
• Mathematical statistics

Similarly, employers will consider your education, but they generally place more emphasis on preliminary exams when filling vacancies that do not require SOA or CAS certifications.

To build the knowledge you need to pass actuarial exams and/or fulfill certification-level VEE requirements, consider a degree in:

• Actuarial science
• Accounting
• Economics
• Finance
• Mathematics or statistics

Required Credentials for Actuaries

Advancing in their careers requires actuaries to pass standardized exams. Actuaries typically begin with the preliminary exams administered by the SOA and CAS, including the:

• Probability Exam (SOA Exam P)
• Financial Mathematics Exam (SOA Exam FM)

The other preliminary exams include:

• Investment and Financial Markets (SOA Exam IFM)
• Long-Term Actuarial Mathematics Exam (SOA Exam LTAM)
• Modern Actuarial Statistics I Exam (CAS Exam MAS-I)
• Modern Actuarial Statistics II (CAS Exam MAS-II)

The specific exam(s) you will need depend on the exact nature of your role. For instance, if you want to specialize in investment-associated risks, the SOA Exam IFM might make a good target.

The SOA and CAS also administer many other exams beyond the preliminary level. These exams generally focus on specific professional practice niches and can help you establish your authority and expertise in these areas. They cover topics including:

• Business economics
• Financial, economic, and risk modeling
• Financial reporting
• Predictive analytics
• Ratemaking and liability estimating

You do not need to pass every available actuarial exam. Instead, working actuaries typically select one or more practice areas, and then complete the associated exam(s) to progress into related professional roles.

Optional Actuary Certifications

While not required, SOA and CAS certifications support professional development and advancement. Obtaining an SOA and/or CAS certification also opens doors to organizational membership opportunities.

Both the SOA and CAS offer two certification levels: associate and fellow. Associate certifications are introductory, while fellow certifications are more advanced.

SOA certifications mainly extend to actuaries working in:

• Health or life insurance
• Finance and investing
• Retirement benefits

CAS certifications primarily focus on the automobile, commercial, home, and workers' compensation insurance fields.

Actuaries can also pursue other widely recognized certifications and credentials, including:

• Chartered Enterprise Risk Analyst (CERA)
• Chartered Property Casualty Underwriter (CPCU)
• Fellow, Society of Enrolled Actuaries (FSEA)

Maintenance and renewal requirements vary among individual certifications. In some cases, you only need to pay an annual membership fee to the organization that issued the credential to keep it. In others, you may need to renew on a regular schedule by meeting ongoing CE requirements.

Continuing Education

The American Academy of Actuaries requires all credentialed actuaries to complete at least 30 CE hours annually. These standards apply to any actuary in the United States who holds an active membership in one or more of the following organizations:

• American Society of Enrolled Actuaries
• CAS or SOA
• Conference of Consulting Actuaries
• American Academy of Actuaries

The annual CE hours must include at least six hours of organized activities, at least three hours of professionalism training, and at least one hour of anti-bias training.

Required Experience for an Actuary

As with other aspects of becoming an actuary, there are few hard requirements regarding experience. However, experience may improve your performance on your preliminary actuarial exams and other aspects of the credentialing process. Beyond paid employment, you can gain experience through internships or practicums.

Some people prefer to gain practical experience before sitting for their first preliminary exams. Others elect to take SOA Exam P and SOA Exam FM before graduating from college so they can market themselves to potential employers. Both paths have merit, and you can choose the one that best matches your developmental needs and personal situation.

Should I Become an Actuary?

The actuarial profession may appeal to detail-oriented quantitative thinkers who enjoy mathematical modeling, probability projections, and analyzing statistical data. According to the U.S. Bureau of Labor Statistics (BLS), actuaries earned a median salary of $120,000 per year as of May 2023. The BLS also projects 22% job growth for actuaries from 2023-33, which is much faster than the average growth for all occupations.

Actuaries are in demand, allowing them to earn high salaries and have job security. Yet, these benefits come with trade-offs: Burnout can happen, and the SOA noted high levels of job turnover in the April 2023 edition of its member magazine.

If you elect to pursue an actuarial career, prepare yourself for the realities of the job. It involves long hours of desk-based work, where you will focus heavily on numbers and statistical data. If that sounds appealing, the profession could be a good match for you. If not, you may want to consider other options.

The Job Hunt

Actuaries are in high demand. The BLS projects an additional 6,600 actuary jobs from 2023-33 with 2,200 annual openings on average over the next decade. Qualified candidates can turn to many sources to find leads for these vacancies.

With affiliate membership in the CAS or SOA, you can access these organizations' mentorship and job search programs. You do not need to have an associate or fellow credential to qualify for affiliate membership in either organization.

Other good sources of actuary job listings include:

• Actuary.com: Branding itself as a leading source of actuarial job postings, Actuary.com offers a job search portal, career coaching, and many other features. Users also can sign up for alerts when jobs matching specific keywords become available.
• Actuary List: Created and run by an actuary, this website allows actuarial professionals to apply directly to employers for advertising opportunities and vacancies. You can search for domestic and international job opportunities, including remote actuarial jobs.
• American Academy of Actuaries Career Center: Academy members can create profiles, search for job vacancies by keyword and location, and access exclusive professional development and training resources.
• Pro Actuary: This job board offers access to a global employment network. Candidates can browse and apply for jobs in dozens of countries, or search for jobs in specific cities, industrial sectors, or employers.

Get Tips on Job Searching

• How do you professionally network in accounting?
• Is it worth working with a recruiter?
• How do you write a resume?

Upward Mobility

Beyond achieving a CAS or SOA associate or fellow credential, you can follow other paths as your actuarial career develops. Actuaries are one type of financial risk specialists, who earn an average annual salary of nearly $119,000 according to BLS data from May 2023.

Examples of other financial risk specialists include:

• Financial modeler
• Investment analysts
• Risk managers

At the highest level, you can advance into C-suite roles, such as chief financial officer, chief investment officer, or chief risk officer positions. Pairing actuarial experience with a credential like an MBA or other advanced professional degree may boost your potential to advance into the upper executive corporate ranks.

Questions on How to Be an Actuary