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What is it like being an actuarial scientist?
What is it like being an actuarial scientist? What does the typical day consist of? Do you enjoy your job? Is it hard?
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Donna’s Answer
My career spanned about 40 years from 1974 to 2015. You do not need a math major but liking math and having an aptitude for it are important.
There are many avenues one can take in the actuarial field. I chose consulting with a specialty in pension plans. But there are paths in life and health insurance and in the casualty field (property, car, etc.). One can work at insurance companies (large or small), in the government (such as the Social Security Administration, Pension Benefit Guaranty Corporation, IRS, and many others governmental entities), consulting firms (some of which are primarily actuarial but actuaries are also often employed in accounting firms and general management consulting firms).
My days were always interesting - - basically I served clients and communication skills both oral and written were as essential as my math skills.
Building models to evaluate risk, understanding and collecting and validating the essential data to base decisions upon, and setting appropriate economic and demographic assumptions that underlie the models was what I did much of the time. I also needed to stay up to date on the legal and accounting environment that surrounded the design, funding and accounting for pension plans. This was constantly changing so I needed to always be learning, something that I really enjoyed.
I suggest going to the Society of Actuaries website and read more about the career and the exam process for obtaining a professional designation. Such designation are good to have for career advancement. There are other professional organizations as well that you can find out about also. When I obtained my Fellowship in the Society of Actuaries, it was done by exam (nine at that time) and the exams were challenging and pass rates low. I had passed the first two exams just after college graduation based on my college work. It took me almost five years to complete the designation process. The companies I worked for supported me by giving study time, paying exam fees and giving pay increases and/or bonuses for passing. The certification process has changed over time although exams still are a part of the process and obtaining the designation still takes much time and effort. What I really liked about my career was that it could take different paths (and mine did change several times over my career which kept things fresh), was never boring, and always kept me challenged and learning new things. My colleagues were people I could relate to and building strong client relationships was very rewarding. The pay is excellent. Today's world is so different, with remote working, data science advances, the speed of communication and instant access to information but I think the types of people who would enjoy an actuarial career remain similar. And that includes having an analytical orientation, liking to keep learning and enjoying challenging work.
Go to Internet and research actuarial careers - - start with Society of Actuaries
There are many avenues one can take in the actuarial field. I chose consulting with a specialty in pension plans. But there are paths in life and health insurance and in the casualty field (property, car, etc.). One can work at insurance companies (large or small), in the government (such as the Social Security Administration, Pension Benefit Guaranty Corporation, IRS, and many others governmental entities), consulting firms (some of which are primarily actuarial but actuaries are also often employed in accounting firms and general management consulting firms).
My days were always interesting - - basically I served clients and communication skills both oral and written were as essential as my math skills.
Building models to evaluate risk, understanding and collecting and validating the essential data to base decisions upon, and setting appropriate economic and demographic assumptions that underlie the models was what I did much of the time. I also needed to stay up to date on the legal and accounting environment that surrounded the design, funding and accounting for pension plans. This was constantly changing so I needed to always be learning, something that I really enjoyed.
I suggest going to the Society of Actuaries website and read more about the career and the exam process for obtaining a professional designation. Such designation are good to have for career advancement. There are other professional organizations as well that you can find out about also. When I obtained my Fellowship in the Society of Actuaries, it was done by exam (nine at that time) and the exams were challenging and pass rates low. I had passed the first two exams just after college graduation based on my college work. It took me almost five years to complete the designation process. The companies I worked for supported me by giving study time, paying exam fees and giving pay increases and/or bonuses for passing. The certification process has changed over time although exams still are a part of the process and obtaining the designation still takes much time and effort. What I really liked about my career was that it could take different paths (and mine did change several times over my career which kept things fresh), was never boring, and always kept me challenged and learning new things. My colleagues were people I could relate to and building strong client relationships was very rewarding. The pay is excellent. Today's world is so different, with remote working, data science advances, the speed of communication and instant access to information but I think the types of people who would enjoy an actuarial career remain similar. And that includes having an analytical orientation, liking to keep learning and enjoying challenging work.
Donna recommends the following next steps:
Thank you so much for such a detailed response! You mentioned how there are several avenues in the actuarial field. Which ones are the most pursued?
Tejasvi
I don't know what direction most actuaries pursue currently (I pursued retirement plans) but a good place to learn about various actuarial career paths is via the following link. You can then dig deeper by following other links provided in the SOA (Society of Actuaries) website and further explore areas that interest you.
https://www.soa.org/future-actuaries/career-paths
Donna Weinstein
Donna Weinstein
Thanks a lot!
Tejasvi
Updated
Atul’s Answer
I know someone who is an Actuary.
This what I know based on her background.
1) You have to be extremely good in Math in school.
2) Need Math major for BS.
3) You pass an exams to become an Actuary which is not easy task.
There are not enough Actuary in the industry and if you do well you can write your own check for any job.
Insurance, Banks, and Govt need Actuary for a wide range of applications
This what I know based on her background.
1) You have to be extremely good in Math in school.
2) Need Math major for BS.
3) You pass an exams to become an Actuary which is not easy task.
There are not enough Actuary in the industry and if you do well you can write your own check for any job.
Insurance, Banks, and Govt need Actuary for a wide range of applications
Thank you, this is really helpful.
Tejasvi
Updated
Joshua’s Answer
I am currently an actuarial analyst. There are a few different tracks you can go in this profession, which include health/life insurance, pensions, and property and casualty. I am in that last group and deal specifically with pricing homeowners insurance. So my answer is based on that career choice, but know that answers vary greatly depending on what track and line of business you choose to pursue.
My typical day consists of running analysis on our rates for different states and products for a variety of variables or factors to see if they would be beneficial to our company and keep us at the level of profitability that we are seeking. I also will look to trends to help make these decisions. I communicate with a team to see if my pricing decisions make sense on other levels besides just profit. This includes things like, how it will affect the agents selling our product, how it meshes with the goals of the company as a whole, and if it fits with the regulations of the state at the time. There is of course a lot more to it than that, and does include some general office work like editing and formatting documents that I will be submitting.
But in general, the things I do basically fit into the categories of analysis, communicating my analysis with my team and manager, working with my team to make sure my analysis fits with requirements in other areas, then professionally presenting that analysis to either my upper level management or regulatory body (state insurance department).
I would say being an actuarial analyst requires great knowledge in math, the ability to communicate your findings to both people who also have great knowledge in math, and people who do not, and the ability to balance decisions to be actuarially sound, good for the vision of your company, and legal for the state you are working in.
I absolutely love my job. I get excited when I come home from vacations because I want to get back into the work I was doing. My work directly contributes to meaningful changes in my company's products. Also my company (and from what I've heard, most companies in general) treat actuaries very well. The pay, benefits, possibilities for advancements, and work life balance are all better in this profession than the half dozen other professions I worked previously.
The one issue is the exams. Exams are hard! Studying for them requires you to make sacrifices in other parts of your life. There is a clear distinction between those that are done studying for exams and those that are not in terms of their life quality. This is the one area I'd say my life is hard in this profession. Of course some of the work is challenging, its why actuaries are so valued and treated so well, but I enjoy that challenge. Its the exams that I absolutely do not enjoy.
My typical day consists of running analysis on our rates for different states and products for a variety of variables or factors to see if they would be beneficial to our company and keep us at the level of profitability that we are seeking. I also will look to trends to help make these decisions. I communicate with a team to see if my pricing decisions make sense on other levels besides just profit. This includes things like, how it will affect the agents selling our product, how it meshes with the goals of the company as a whole, and if it fits with the regulations of the state at the time. There is of course a lot more to it than that, and does include some general office work like editing and formatting documents that I will be submitting.
But in general, the things I do basically fit into the categories of analysis, communicating my analysis with my team and manager, working with my team to make sure my analysis fits with requirements in other areas, then professionally presenting that analysis to either my upper level management or regulatory body (state insurance department).
I would say being an actuarial analyst requires great knowledge in math, the ability to communicate your findings to both people who also have great knowledge in math, and people who do not, and the ability to balance decisions to be actuarially sound, good for the vision of your company, and legal for the state you are working in.
I absolutely love my job. I get excited when I come home from vacations because I want to get back into the work I was doing. My work directly contributes to meaningful changes in my company's products. Also my company (and from what I've heard, most companies in general) treat actuaries very well. The pay, benefits, possibilities for advancements, and work life balance are all better in this profession than the half dozen other professions I worked previously.
The one issue is the exams. Exams are hard! Studying for them requires you to make sacrifices in other parts of your life. There is a clear distinction between those that are done studying for exams and those that are not in terms of their life quality. This is the one area I'd say my life is hard in this profession. Of course some of the work is challenging, its why actuaries are so valued and treated so well, but I enjoy that challenge. Its the exams that I absolutely do not enjoy.
Updated
Victor’s Answer
My friend is an actuarial scientist; here's what he said:
It's an office job. It's the same amount of boring as any 9-5 office job. Unless you're in consulting, where you'll work 50+ hours per week sometimes.
People choose the actuarial profession, because your advancement and salary are based on your own ability to study and pass exams, rather than external factors like how much your boss and boss's boss like you (though that is also important).
It's an office job. It's the same amount of boring as any 9-5 office job. Unless you're in consulting, where you'll work 50+ hours per week sometimes.
People choose the actuarial profession, because your advancement and salary are based on your own ability to study and pass exams, rather than external factors like how much your boss and boss's boss like you (though that is also important).
Thank you so much!
Tejasvi
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