About Actuaries

What is an Actuary?

An Actuary is a business professional who analyzes the financial consequences of risk. Actuaries use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. Actuaries may work for insurance companies, consulting firms, government, employee benefits departments of large corporations, hospitals, banks and investment firms, or, more generally, in businesses that need to manage financial risk. A career as an Actuary is better described as a “business” career with a mathematical basis than as a “technical” mathematical career.

If you aren’t sure if this is the right career for you, keep reading. An actuary is consistently rated as one of the best jobs. A job as an actuary entails very little stress after the exam process. Low stress, high intellectual challenge, flexible hours, and high salary level are some factors contributing to overall job satisfaction. Actuaries have virtually unlimited opportunities for advancement. Many CFOs and CEOs around the country were actuaries.

How do I become an actuary?

Actuaries are business mathematicians. In order to enjoy being an actuary, you must enjoy statistics, finance, and other mathematical business-related topics. Most actuaries graduate from college with some form of mathematics degree. MTSU is one of the few schools in the country to offer a mathematics major concentrated in actuarial science. Attaining a four-year degree in any field is the first step that companies require for you to become an actuary, though.

Actuaries must also go through a rigorous exam process. Usually, while still in college, actuarial students begin the exam process. Two main societies administer the exams: the Society of Actuaries, which focuses on life and health insurance, and the Casualty Actuarial Society, which covers risks like auto insurance and property liabilities. The first and second exams are administered jointly by the two societies. All other exams are separate. The first exam tests an actuarial student on probability and statistics, and the second on financial mathematics.

The next step would be to satisfy Validation by Educational Experience (VEE). Material learned in VEE Credit courses was at one time part of the exam process. The SOA and CAS decided this material could be learned more easily separately from the exams. To find out more about VEE, go to the previous link or to the SOA VEE Process description.

At this time, you probably would have made a decision on whether to join the SOA or CAS. The courses and exams needed for each society is different. To find out what each requires, review the SOA and CAS syllabi. After completing the first set of exams, actuarial students may apply for Associateship, and after completing the last few exams, they will apply for Fellowship. These two designations are equivalent to Master’s and Doctorate degrees. Completing the exam process is a major achievement for an actuary.

MTSU offers courses that will prepare students for exams, as well as courses that satisfy the requirements for VEE credit. To graduate with a Mathematics Degree with a concentration in Actuarial Science, you will also need to fulfill the basic requirements of the MTSU Mathematics Department.

For course listings, check the web version of the MTSU Undergraduate Catalog.