Actuaries Crunch the Numbers to Solid Careers
Webster's dictionary defines risk as the possibility of loss or injury.
Determining the chance of those risks is the job of an actuary.
These days, you can work in a variety of areas as an actuary. While
you can no longer count on the career stability of the past, new and lucrative
opportunities are available.
Backed by strong mathematical skills and creativity, actuaries use statistics
and probability to plan future risk. They use their calculations for life
and property insurance policies, employee benefits, a range of financial planning,
and even to develop evidence when chosen as expert witnesses in court.
Actuaries may be employed in small and large firms and at major corporations.
Or they may work for themselves as consultants.
"Being an actuary is probably one of the best professions in North America,"
says actuary Bruce MacDonald. He has experience both as a consultant and in
the life insurance field.
"The job is well-paid and advancement is usually rapid. There is a fair
degree of independence and much respect for co-workers," explains Macdonald.
According to Cheryl Krueger, Chief Actuary of the Society of Actuaries,
there are roughly 18,000 actuaries in North America. "Given the small number,
there are many opportunities. I'd put them in the hundreds," she says.
Despite some cyclical downturns in actuarial employment, Krueger feels
it is, for the most part, a stable industry. She says that actuaries can apply
their skills in a variety of risk areas.
MacDonald agrees there are plenty of opportunities and actuaries continue
to find new challenges. "Anything that involves both probability and the time
value of money is within an actuary's skills."
The labor market is strong. But according to MacDonald, it was even better
when he started in the 1950s.
"At one time the [phrase] 'unemployed actuary' was an oxymoron, but it
is no longer the case. Consolidations and takeovers within the insurance
industry have reduced the number of opportunities in insurance.
"But it has been compensated for by increased opportunities in consulting,
government, academia and non-traditional fields -- including banking and financial
markets among others," says MacDonald.
Still, the most common place for actuaries to work is the insurance industry.
Actuaries look at the chance of property damage and loss, vehicular damage,
and individuals becoming sick, disabled or even dying. They pore over statistics
to develop insurance policies and the rates customers should pay.
MacDonald began his career in the insurance industry. As a young actuary,
he had his choice of jobs. "I was a supervisor by age 23 and a company officer
by age 26. It was a rare month when I didn't get [another] job offer. Today
there is more competition, and promotion is somewhat slower. Nowadays actuaries
tend to be specialists in one field," he says.
Krueger explains that a decline in the number of benefit pension plans
has impacted demand, forcing many actuaries to branch out into other benefits
consulting.
"On the other hand, the need for employees to take on additional personal
financial responsibility as employer and government plans provide less support
will continue to drive demand for professionals with actuarial credentials,"
predicts Krueger. And it's the consulting side of the actuarial professional
that's seen the most growth over the past decade.
Rohana Ambagaspitiya is a university professor. She says their actuarial
science program has no enrollment cap so competition for spaces is not a problem.
However, she admits students haven't always found immediate work in the industry.
She remembers a time in the '90s when many graduates were unable to find
entry-level jobs. "It's better [now], but not 100 percent."
Actuarial science students are instructed on topics included in the professional
actuarial examinations. These exams are sponsored and supervised by various
professional bodies, including the Society of Actuaries.
Students may begin writing the first group of exams while attending college,
allowing them to work in the field after graduation. Professional development
can continue while working and earning a salary. It may take as many as ten
years to complete all exams and attain a fellowship in organizations including
the Society of Actuaries and the Casualty Actuarial Society.
MacDonald recommends a degree in mathematics. He also believes young people
should finish high school before deciding on an actuarial career. "What a
student should do is decide whether a career in the business and financial
world is what is wanted. The choice should be made at university. I don't
even think I'd even heard the word actuary until I was in university."
Krueger recommends high school students interested in the actuarial field
take advanced mathematics courses, including calculus, and enroll in computer
science courses to develop computer skills.
"Other activities a high school student can do [include] extracurricular
activities where they work on a team as leader. Students should look into
actuarial internships for their junior and senior years, attend career fairs
for the actuarial profession, consider attending an actuarial summer program
and explore college and universities that offer actuarial science curriculum,"
advises Krueger.
The labor department reports that employment of actuaries is expected to
grow as fast as the average for all occupations through 2020. There is steady
demand from the insurance industry as well as increased opportunities in a
range of new actuarial positions.
It's this variety and the changing environment of the profession that Krueger
likes best.
"I've found that being an actuary has offered me many opportunities to
work in different areas and on different types of projects. I've worked on
consulting projects in Australia and Europe, and have looked at business opportunities
in South America. I've worked on merger and acquisition jobs, business strategy,
efficiency analysis and software sales," she adds.
"Certainly the actuarial career has been beneficial to me. And for a person
who is analytical and inclined to a financial orientation, it's a great career.
The opportunities have been extremely interesting," concludes Krueger.
Links
Be an Actuary - A Career Without Boundaries
Provides advice for students considering an actuarial career
American Academy of Actuaries
The organizational body for all actuaries in the United States
Society of Actuaries
A large organization promoting education and research into actuarial
science
The Actuarial Foundation
A philanthropic organization dedicated to supporting the actuarial
profession
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