The exciting and dynamic future of actuarial science

Have you ever wondered how catastrophes such as the stock market crash of 1929 could have been prevented? What about the Great Recession of the early 2000s? Did these disasters build over time, or were they surprising to the people most affected? Could they have been averted? 

Imagine having the knowledge and the skills needed to steer large entities away from these types of financial disasters. On a smaller scale, imagine being in a position to help your aging aunt or uncle avoid making a tragic investment or helping a small business owner avoid bankruptcy. 

If you pursue your bachelor's degree in actuarial science, you could find yourself in these pivotal roles. You could be the expert who predicts financial risk and keeps companies from experiencing catastrophic financial losses. 

But actuarial science is not only about finance. For example, the criminal justice system is another industry that makes good use of the service of actuaries. In this capacity, actuaries predict the odds that a criminal will re-offend. They do so by considering various factors, including a criminal's age, the type of crime they committed, and their educational background. Using predictive data, they assist in criminal sentencing, deciding what type of punishment will be most rehabilitative and how long the ideal sentence should be. 

Other industries that employ actuaries include:

However, when most people hear the term "actuary," they picture the insurance industry or pension programs. And they're not wrong. 

Actuaries manage risk. They use statistics and data to research past trends and then use that knowledge to help corporations and individuals avoid major financial losses. In the course of a day, an actuary might perform research, communicate with clients, attend a training session, or create a spreadsheet for a client to help them make a responsible decision. In many instances, the actuary’s job is to help people and organizations make sound financial decisions that strengthen their corporations or portfolios.

Other jobs that actuaries may routinely perform on a given day include: 

The job of an actuary can vary quite a bit depending upon the industry they're in and the position they hold. If you pursue this in-demand career, you may have a range of jobs to choose from, and your everyday routine may look far different from your fellow graduates’, though you may have the same job title. 

The traditional route to becoming an actuary includes earning your bachelor's degree in actuarial science or a related field, such as mathematics, finance, statistics, or economics, and then passing two separate actuarial exams: 

Exam P

Exam P focuses on probability. To take the exam, you must register with the Society of Actuaries by the deadline and schedule your testing appointment at the Prometric website. Your test will be computer-based with a three-hour, multiple-choice format. 

Exam FM 

Exam FM refers to Financial Mathematics. It's also a computer-based test that's multiple choice and takes three hours to complete. The registration for Exam FM is the same as it is for Exam P, meaning you must go through the Society of Actuaries and the Prometric website to secure your seat. 

Once you've passed your actuarial exams and worked for a time in your first actuarial position, you may want to pursue your associateship. You'll need to pass several more exams and decide whether you want to work in property and casualty insurance, life and health insurance, or some other aspect of the job. 

It's worth noting that a lot of testing and dedication is involved in becoming an actuarial scientist. Still, for those who love mathematics and problem-solving, it's a highly gratifying and dynamic field. 

Actuaries pursue this career for diverse reasons, and if you have a good grasp of mathematical concepts and finance, you can build a lucrative career as an actuary. This job offers plenty of benefits. We've listed a few of the most popular below.