Actuarial Science Job Research Paper

Math Doctor

During my senior year in high school my algebra teacher, Mr Ouedraogo often talked to us about our futures and wanted us to think about what we wanted to do when we became adults. He encouraged us to look at all possibilities, especially those professions that utilized math in more ways than just to calculate the tip amount on a bill. One day he handed out some fliers about a profession where math was applied in everyday operations, unlike many other jobs in the market. He told us about actuary professionals and how they were in high demand by well respected and high grossing companies, and that actuary is a career path that should be considered by those who demonstrated great mathematical skills and most importantly, those who enjoyed doing it. What he told us made me curious enough to look up the definition of an actuary on the encyclopedia where it reads "Actuary, one who calculates insurance risks and premiums" ( Encyclopædia Britannica Online). I did further research about this career and the more I learned, the more it interested me because I was good at math and enjoyed doing it; therefore before I started college I decided that actuary was going to be my profession. I thought that this career would fit me perfectly, even though I knew that becoming an actuary would demand a lot patience, commitment, perseverance, and sacrifices, including more time outside the classroom. I had read enough to know that I will have to focus every single day and not get caught up in using my time simply enjoying the freedoms and new experiences that a college life can offer. If I wanted to one day become an actuary, as I had set my dreams, I will have to remind myself that my work today will set me on a secured and fulfilled career tomorrow. I thought I would like to be an actuary since I have good math skills I would be able to pass the actuary exams.

Actuaries are like math doctors who analyze the backbone of a company's or individual's financial health and give you a prognosis as to the steps to maintain or attain good health. "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" (Guienguere). A person or company buys insurance as a means to manage risk and actuaries "[use] their expertise in evaluating various types of risk, actuaries help design insurance policies, pension plans, and other financial strategies in a manner which will help ensure that the plans are maintained on a sound financial basis"(Guienguere). However, "[they] do not work only for insurance companies and calculate risk," they also work in all business and economy sectors such as in banks and in consulting firms, that manage other people's money. "[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" (Guienguere). Companies such as Goldman Sachs & Co, The Blackstone Group, and J.P. Morgan Investment Bank are the top 3 banking employers ranked in Vault's Banking 50 for 2011 and they are primary employers for actuaries (Vault Banking 50).

Obtaining a bachelor in actuarial science requires higher level math classes up to calculus III and businesses classes including economics, accounting and finance. A college student is also recommended to do internships with existing companies while taking the college courses so that enough experience can be obtained by the time him or her graduates. By having both a college degree and field experience, that graduate can be ready to be hired by any company, primarily because almost all employers demand a minimum of infield experience. While the end of the path is the most rewarding experience, the most challenging aspect for a student, majoring in actuarial science, is completing and passing all eight of the actuarial science exams needed to be licensed. The exams are usually taken in one year intervals, though it is possible to take two exams per year. Many students prefer to distance the time between exams because they are very demanding and are also expensive; however it is possible to get an internship or even begin working at sub entry level positions after passing the first exam but the more exams passed the more likely it is to be selected for better positions in the field since companies know that those who have already invested a lot of time and commitment on their own, are safer ventures on whom to invest company money and time.

A student majoring in math, business, statistics, economics or finance can still be an actuary if they are able to pass all eight actuarial science exams. They must do individual studies instead of group studies usually done with classes in actuarial science programs. "Actuaries may have majors in areas other than math, such as operations research, physics, engineering, and even fine arts. You would be surprised at the variety of backgrounds actuaries have. While majoring in actuarial science or math in college would benefit someone wanting to be an actuary, it is not a necessity. While certain skills are important,