Information About Actuaries
What does an Actuary do?
Below is a sampling of the responsibilities of an actuary:
- Product design
- Marketing actuary
- Experience studies
- Valuation of inforce blocks
- Profitability analysis
- Risk management
- Projection of future financials
- Rating agencies and regulators
- Influence public policy and regulations
- Moves on to executive levels of management
Employment and Compensation:
Actuaries work for insurance companies, government, and consulting firms. In Fall 2021, a survey showed that in the Omaha region with only a bachelor's degree and some work experience, an actuary's median yearly salary was $79,952 and those with a master's made $114,889. As of 2020, the national median annual salary was $111,030.
How to prepare for actuarial work:
In the actuarial profession you can earn while you learn. Many students receive on-the-job training while enrolled in the examination process. Employers are generally supportive and may give students study time during working hours, pay exam fees, and award raises for each exam passed. However, most employers prefer to hire people who have started the series of examinations on their own and have already passed at least two or three. Exams cost approximately $250 and can be locally issued through the Sylvan Learning Centers.
The nine levels of examinations are as follows:
- Exam 1/P - Probability (Recommended courses: MATH 4740)
- Exam 2/FM - Financial Mathematics (Recommended course: MATH 3400)
- Exam 3/IFM - Investment and Financial Markets
- Exam 4/LTAM - Long-Term Actuarial Mathematics
- Exam 5/STAM - Short-Term Actuarial Mathematics
- Exam 6/SRM - Statistics for Risk Modeling
- Exam 7/PA - Predictive Analytics
- Fundamentals of Actuarial Practice e-Learning Course
- Professional Development
Examples of exams may be found at beanactuary.com. For details on each exam (including syllabi), please visit the SOA or CAS websites.
Actuaries can become certified through the Society of Actuaries (SOA) or the Casualty Actuary Society (CAS). The SOA focuses on life and health insurance and pensions, while the CAS focuses on property and casualty insurance such as auto, homeowners and workers’ compensation.
Additional Requirements
In addition to exams, actuaries are required to take classes covering specific topics. For Validation by Educational Experience (VEE), a candidate must show that a subject has been sufficiently covered by a university or other coursework with a grade of B- or higher. There are three areas:
Accounting and Finance - Can be fulfilled by completing both ACCT 2010 and FNBK 3250
Economics - Can be fulfilled by completing both ECON 2200 and ECON 2220
Mathematical Statistics - Can be fulfilled by completing MATH 4750 (pending SOA approval Fall 2021)
Most UNO students in the Pre-Actuarial Mathematics concentration use VEE courses to complete the Cognate requirement for their Bachelors of Science.
Suggested Courses
It is additionally recommended that students complete ACCT 2020, FNBK 2710, and FNBK 3400 to familiarize themselves with the fields of insurance and finance.