Here are the following steps to become an actuarial analyst:
1. Get related education in high school and college
If you want to work as an actuary, you need at least a bachelor’s degree, however, it might be argued that your relevant education begins even before college. You should take math courses throughout high school, and if you can, you should enroll in an AP math class.
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An actuarial analyst program likely exists at the college where you’ll be attending. It’s fine if you don’t. Although majoring in actuarial science can be beneficial, it is not a strict need if you have a related education. It would be ideal if you majored in mathematics, finance, or economics.
2. Included in extracurricular activities
It’s probably been drilled into your brain since you were a kid that having a lot of extracurricular will help you get into college, but it can also help you advance in your profession.
Extracurricular activities that demonstrate your capacity to juggle a demanding workload can be a valuable advantage when applying for internships and your first employment in the industry.
3. Acquire technical computer skills
College computer science courses will undoubtedly give you a leg up, but if you want to truly master the software you’ll be working with, you’ll need to go beyond the basics.
It’s worthwhile to take courses in specific applications like Excel or programming languages like SQL, whether at your school or elsewhere. It may also be beneficial to experiment with them in your spare time.
4. Take and pass 2 actuarial exams before graduating
To become a full-fledged actuary, actuaries must pass multiple exams during the course of their careers. It is suggested that you take two of these tests by the time you graduate from college.
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The Probability Exam (also known as Exam P) and the Financial Mathematics Exam are the first two tests taken (aka Exam FM). Although they are all three-hour courses that demand hours upon hours of studying, they are all beginner’s tests for actuaries.
5. Get an actuarial internship
Before you graduate, you should have completed an internship or two in addition to passing the first couple of tests. There isn’t much free time when you’re working as an actuary.
You can get a quality actuarial internship working on a team with professional actuaries if you have an impressive résumé of related courses, extracurriculars, and possibly even an exam completed.
This helps you obtain job experience and make connections, both of which are important for your CV, as well as get an idea of what an actuary’s day-to-day responsibilities are.
6. Obtain your first entry-level actuarial analyst job
You’ve gotten this far. You’ve completed your college education, passed a few examinations, and done internships. It is now time for you to enter the workforce and seek employment in your field.
This is certainly easier said than done, but if you’ve put in the effort, prepared diligently for your exams, and paid careful attention during your internships (and can successfully demonstrate all of this in an interview), you might just land your first entry-level job.
7. Select between SOA and CAS
You’ll be deciding what direction you want to take as an actuary at the same time you’re looking for a job. Which actuarial society you join depends on the field you want to work in as an actuary: the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS).
The fundamental distinction between the two organizations in the field in which these actuaries work. The CAS stands for property and casualty insurance, or P&C insurance.
The SOA is primarily concerned with health, retirement, and life insurance. After you’ve completed the first several general examinations, each association will want you to take further exams.
8. Take VEE- Approved courses for requirement
Regardless of affiliation, you will need to attend courses on validation by Educational Experience (VEE) issues either during college or later (ideally throughout).
You must take VEE-approved courses in economics, accounting, and finance, as well as mathematical statistics. Online courses that are specially approved for this can be discovered. Furthermore, you must pass at least two tests before submitting a request for VEE credit.
9. Continue your exams
Even if you’re in the middle of a profession, you still have tests to take and study for. Fortunately, many businesses will pay for your examinations, allowing you to become a member of the association of your choice.
In addition to the initial tests and VEE requirements, you’ll need to complete exams in long and short-term actuarial mathematics, statistics for risk modeling, and predictive analysis to become a member of the SOA or an Associate of the Society of Actuaries (ASA).
You can become a Fellow of the Society of Actuaries if you pass all of these tests as well as some SOA e-learning courses/modules (FSA). Corporate Finance and ERM, Quantitative Finance and Investment, Individual Life and Annuities, Retirement Benefits, Group and Health, and General Insurance are the six tracks available to become an FSA. Every one of these has its own set of exams and courses.
Modern actuarial statistics, rate making and calculating claim liabilities, regulation and financial reporting, financial risk, and other exams are required if you want to become a member of the CAS.
