How To Become Actuary

This article provides in-depth information into What is Actuary? What Actuary do? Degrees for Actuary, Steps to become Actuary and much more.


An actuary is a business proficient who ascertains money related risks through probability, statistics and information on business and financial matters. They utilize predictive analysis of statistics and patterns to tell the probability of an occasion happening. An accountant is somebody who endeavors to value the present.  An actuary is somebody who endeavors to value the future.

What does Actuary do ?

Actuaries analyze data to estimate the probability and likely cost to the company of an event such as death, sickness, injury, disability, or loss of property. Actuaries also address financial matters, such as how a company should invest resources to maximize return on investments, or how an individual should invest in order to attain a certain retirement income level.

  • Analyses the probability of an event happening in future.

  • Outlining better approaches to lessen the probability of unfortunate occasions.

  • Diminishing the effect of unwanted events.

  • They outline a solution that benefits the interest of every party.

  • They research and create strategies.

  • Reserve Analysis of Funds.

  • They periodically review the rates of insurance premiums.

  • They price products according to the market trend.

Steps for becoming Actuary


A student does not have to take any particular program to become an Actuary; however, students take Maths, Economics, Finance, Business or Statistics. Few schools also have a special program designed for actuaries that offer major in Actuarial Science.


Undergraduates finishing a degree in an irrelevant field should supplement their undergrad profession with business and statistics courses. Every single imminent statistician will profit by picking up programming languages, for example, SQL, C++, and VBA. Arts understudies need to take the most number of side subjects, including some actuarial arithmetic courses.


You should finish at least 2 actuarial exams before finishing your four-year college education to expand your odds of landing a position in the related field. Managers by and large don't lean toward hopefuls who don't have at least two certificates. Likewise, during your bachelor's program, you should do at least 2 summer internship. Ideally, you should do one internship at an insurance agency and a second internship at a consultancy.


There are two associations who provide professional certification for actuaries The Society of Actuaries (SOA) and the Casualty Actuary Society (CAS). The first level of certification awarded is Associate. For the Society of Actuaries, a student has to pass a series of five examinations in order to be approved for membership. For the Casualty Actuary Society provides a similar path. A prospective associate has to pass a series of six examinations to get a membership.


After getting the associate membership if an associate wants to earn the title of fellow, in the case of Society of Actuaries (SOA) he has to go through a series of more advanced examination and choose one of six tracts to specialize in. And for Casualty Actuary Society an associate needs to take 3 additional exams to earn the title of fellow.

Actuary Degree Levels


There is no need for a specific program or specific major to become an Actuary. You can choose any major but you need to take additional courses in statistics, probability, math, finance, economics, and business to be eligible to take the exams.


  • Forecasting methods

  • R programming language

  • Predictive analysis


A branch of mathematics that deals with collection, interpretation, organization, and presentation of Data.


  • Supply and Demand

  • Fiscal Policy

  • International Trade


Economics is the sociology that reviews the creation, dispersion, and utilization of products and services.


  • Net Present Value

  • Valuing Riskless Cashflows

  • Market Efficiency


Finance is the management of money matters. It incorporates the elements of assets and liabilities after some time under states of various degrees of vulnerabilities and risks.


The Master of Science (MS) in Actuarial Science gives you the abilities to be an effective Actuary. You'll pick up a strong academic foundation through particular courses in actuarial science, finance, statistics, and related fields. You will likewise profit by the viable introduction to business and financial standards.


  • Insurance Regulations

  • Insurance marketing and distribution

  • Risk control and premium auditing


To make a framework to shield finances from losses through risk management.

Mathematical Finance

  • Price-yield relationship

  • Estimate volatility

  • Ito's lemma and its applications


Otherwise called quantitative finance is a field of applied mathematics, concerned with scientific modeling of financial markets.

Computer science

  • SQL

  • C++

  • VBA


Computer science is the investigation of the hypothesis, experimentation, and building that shape the reason for the outline and utilization of Computers.


Doctorate in actuarial science considers a scope of hypothetical and connected issues in annuities, life and general protection, and medicinal services. Specific roads of research incorporate protection dissolvability, mortality, and lifespan displaying, chance administration, evaluating in focused markets, reliance between dangers, the effect of reasonable esteem bookkeeping on protection and the financing of social care.


  • Principles of Risk and Insurance

  • Package Design, Pricing, and Analysis

  • Governance Structure


Microinsurance is the protection of low-pay individuals in exchange for a general premium installment.

Behavioural economics

  • Heuristics and Biases

  • Risk Preferences

  • Changing Behavior


A method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.

Predictive modeling

  • Logistic Regression

  • Time series analysis

  • Decision trees


Use of data mining and probability to forecast outcomes.