In addition, the importance of an actuary with the workplace has grown as they assist in risk management in a range of industries, including insurance carriers, banks, and investment firms. These analytical people have a bright future ahead of them.
Over the course of time, this field’s job growth has been exponential. This indicates that you have a decent chance of landing an excellent job.
Indeed, the Bureau of Labor Statistics (BLS) forecasts a 20% increase in actuarial jobs between 2018 and 2028.
Isn’t that enormous?
Those without a college degree in a field linked to this job description, on the other hand, may need to stick with this article.
Because this is where you can learn how to work as an actuary without a degree.
Before we get into the specifics of what to do, let’s go through what an actuary does and what it’s like to be an actuary.
What Does an Actuary Do?
You will almost certainly be learning actuarial, insurance, and company policies in your first year of actuarial work, and you will almost certainly be given some responsibility.
After you’ve gained some experience, you’ll be assigned larger dollar-amount assignments and higher-level labor.
However, the labor may differ depending on the organization and the area of specialization. However, you’ll most likely be dealing with a large quantity of data, running various calculations, looking for patterns and trends, and determining what fee to charge for an insurance arrangement or how much to set aside to pay for claims.
Actuaries use their extensive knowledge in the domains of arithmetic and statistics to calculate the costs of insurance plans.
They calculate the risk variables for floods, fires, unemployment, accidents, death, and other hazards to provide an accurate picture of the risk that insurance companies will accept by insuring a person or a business.
Actuaries collaborate with insurance companies that have experience in a variety of areas, including disaster relief, medical coverage, accident coverage, and homes insurance.
They apply their keen analytical and risk-management skills, as well as basic human behavior, to develop techniques that will bring positive outcomes to unfavorable scenarios.
Meanwhile, property and casualty actuaries study what will happen to insurance companies and other organizations in the event of a disaster.
Furthermore, actuaries should not only be able to research and develop procedures; they should also be able to accurately analyze how well these strategies would attempt to reduce the risk carried by the insurance agencies for which they work while providing a suitable benefit to policyholders.
Actuaries with advanced degrees have a strong background in arithmetic, statistics, and planning. Communication skills are an absolute requirement in this case, since actuaries must be able to clearly communicate the cause and effects of risks to the business when updating insurance premiums.
Let’s look at the differences between an actuary and an accountant now that you know what actuaries do.
Do You Need a Degree to Become an Actuary?
To become an actuary, you don’t necessarily need a degree, but having a bachelor’s degree in actuarial science,
statistics, business, or mathematics may make you more attractive to companies.
What Do You Need to Become an Actuary?
To become an actuary, you must pass a set of certification examinations that will allow you to
legally work as one. As an actuary, you can obtain two sorts of certifications:
- Associate actuaries are familiar with the basics of actuarial topics.
- Fellowship actuary: This is an actuary’s greatest honor, and many organizations regard fellowship actuaries as experts in their profession.
Skills needed to become an actuary
Actuaries use a variety of talents on a daily basis, including:
- Actuaries must be analytical because they are frequently detecting patterns and trends in order to forecast future events.
- Detail-oriented: Detail-oriented people pay close attention to the smallest details, which is especially crucial
- when dealing with a large number of variables and risk factors.
- To generate accurate reports and financial estimates, actuaries must be detail-oriented.
- Actuaries frequently endeavor to tackle difficulties linked with potential risk factors in order to provide answers to their companies.
- They also seek for solutions to reduce the likelihood of financial loss by minimizing potential hazards.
- Actuaries must have great math skills since they frequently work with difficult mathematical formulas. Actuaries must also be familiar with calculus and statistics since they calculate potential financial risks.
How to Become an Actuary without a Degree
Here are four steps to assist you in becoming an actuary without a college degree:
1. Earn a diploma or GED
To become an actuary, you must first earn a high school diploma or GED. Many classes that are offered in high school or GED programs are beneficial to actuaries because they teach skills they use every day, like math and statistics.
2. Pass certification exams
To legally work as an actuary, you must become certified either through the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS). The first certification you must get is an associate certification, which you can earn by passing a Validation of Educational Experience (VEE) in corporate finance, economics and applied statistics. Overall, there are seven exams to become a certified actuary. Once you complete the exams, a committee reviews your scores.
If you do not have a college degree, it’s essential to prepare for each certification exam. A few ways to prepare are by using online resources to study and taking practice tests. There are several online study guides that may offer thorough study preparation for each exam.
3. Gain experience
Once you have your certification, it’s important to gain experience, which you can do through an apprenticeship. During an apprenticeship, you may observe other actuaries as they work and provide support for gathering data and offering solutions. You may find actuarial apprenticeships by looking online to see if any insurance companies or independent consultants are hiring an entry-level actuary.
Another great way to gain experience in the field is by volunteering as a consultant for actuary societies. Many actuary societies offer free consulting services to individuals or with a reduced fee. Volunteering as an actuary gives you the opportunity to work with a diverse clientele in many actuary specialties.
When applying for jobs, it’s important to have an up-to-date resume. As an actuary without a college degree, you may focus more on your relevant experience and certifications, and describe why your skills make you a great fit for the role.
Tips for becoming an actuary without a degree
Here are some tips to help you become an actuary without a college degree:
1. Study for the certification exams
In order to pass the certification exams, it’s essential to devote a sizable amount of time to studying for each exam. A great way to prepare for the exams is to hire a tutor who can help you fully optimize your study time.
2. Don’t be hard on yourself
It is common for individuals to require several attempts to pass the certification exams, but you can always retake an exam you don’t do well on. Try to remember which concepts gave you trouble so you can go back and study them again.
3. Network with other actuaries
Meeting other actuaries may help you find jobs or learn more about actuary skills. You may even form study groups with other actuaries who are also studying for the certification exams. One way to meet other actuaries is to join professional actuary organizations.
To become an actuary, you must pass the necessary actuarial body’s exams,
thus the first decision you must make is which organization you want to join.
The country you live in, the type of actuarial work you want to undertake (P&C, life, pensions, etc.),
and the country you want to live and work in after you qualify will all play a role