HOW TO BECOME AN ACTUARY in 2021 – All You Need to Know to Become an Actuary

Are you interested in learning how to become an actuary? If yes, then keep reading, as we walk you through all that you need to know to about becoming an Actuary.

If you’re someone with who loves playing with data and statistics then you should probably settle for being an Actuary.

Mathematics and knowledge in computer software can earn you a lucrative and stable job, a lot of companies could use your expertise.

In this article, we have carefully and strategically compiled all you need to know to become an actuary, the average salary of an actuary, the job opportunities available for an actuary and lots more.

If you’re yet to choose a career path, then this article can give you a detailed exposure that will make you choose or refrain from being an actuary, either way, you will be duly informed.

Wondering Who an Actuary is??? Let’s get started!!!

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An actuary is essentially an analyst for risk management, doing the math to figure out how risky something might be and determining how best to minimize it in the future. Actuaries have zero tolerance for errors and highly effective in reduction of possible harms in business.

It’s a career that may be heavily associated with insurance but can be more than that if channeled to other areas of risk management. Actuaries are most often needed in the insurance industry where there is a lot of financial risk involved in health insurance, life insurance and home insurance. Here, actuaries use data and a number of factors to determine just how risky an insurance policy is to give to someone.

They don’t just determine the level of risk, they use their skill to determine possible ways to avert or minimize it’s effect on businesses. The importance of actuaries in organizations, government establishments and financial institutions cannot be overemphasized .

I’m sure you’re liking the sound of that, meanwhile before you take the decision of becoming an actuary, let’s take a look at the steps to becoming an actuary.



Having known who an actuary is, becoming an actuary can be achieved following these steps sequentially and completely, the steps include

Been an actuary requires you to have a Bachelor’s degree in Actuary or related courses. Having a bachelor’s degree is a must if you’re looking to get hired as an actuary. Depending on the college you attend, it’s possible that there may be an actuarial program to major in. If not, majoring in actuarial science can certainly help.

A major relating to mathematics, finance or economics would be perfect, because so much math is involved, computer science courses are crucial as well, considering how much of the actuary job is working with software and spreadsheets. Communications classes can be helpful, as can liberal arts courses to ensure you get a well-rounded education.

Develop Technical Computer Skills

Computer science courses in college will certainly give you a huge advantage, but if you want to really become well-versed in the software you’ll be using you’ll have to go outside of generic classes. If you can find courses on specific programs like Excel or programming languages like SQL, whether at your school or outside of it, they’re worth taking.

And in your free time, it could help to tinker around with them. Most work done by an actuary is usually done using the computer system, getting acquainted with the technological world would give you an edge.

Successfully pass 2 Actuarial Exams Prior to Graduation

To be a certified Actuary, you will need to pass several exams, It’s recommended that by the time you graduate college you take at least two of these exams and pass them excellently.

The two exams that are taken as the first ones are the Probability Exam (aka Exam P) and the Financial Mathematics Exam (aka Exam FM).

Although each of these is, in a way, the beginner’s exams for actuaries, they are each three-hour courses that require hours upon hours of studying centring on calculus, probability and risk management.

Land an Actuarial Internship

Before graduation, it’s advised that you should have undergone an internship or two possibly in different environment. How do you do that?

You can land an internship with an impressive resume of relevant courses, extracurriculars, and maybe even an exam passed, you can acquire a solid actuarial internship, working on a team with established actuaries.

This helps you gain work experience and build connections, both integral to your resume, and help you develop a sense of what the day-to-day role of an actuary actually is.

Get Your First Entry-Level Actuarial Job

You’ve made it this far. You’ve graduated college, passed some exams and completed internships. Now, it is time for you to make your way into the working world and find a job in your field.

Certainly, this is easier said than done, but if you’ve put in the work, studied hard for your exams and paid close attention during your internships (and can expertly showcase all this in an interview), you just may find your first entry-level position.

Register with the appropriate Actuary societies

Concurrently with finding a position, you’ll also be determining what direction you want to go in as an actuary.

The field you wish to work in as an actuary will determine what association you want to be a part of for your career: the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS).

The primary difference between the two organizations is the field these actuaries are employed in. The CAS is generally for property and casualty insurance, otherwise known as P&C.

The SOA is more geared toward health insurance, retirement and life insurance. Each association also brings with them different exams you will have to take after the first few general exams you already took.

So before this phase, you should how decided by observation, passion and experience the part where you want to major, this will help you register with the right society.

Increase your worth by taking VEE-Approved Courses

Either during college or after (preferably during), regardless of association you will need to take courses on Validation by Educational Experience (VEE) topics.

You are required to have VEE-approved courses on topics like economics, accounting and finance and mathematical statistics. Courses specifically approved for this can be found online.

In addition, you will need to have at least two exams passed before putting in a request for VEE credit.

Continue Your Exams

After all the requirements, You still have exams to take and prepare for, even while you’re in the midst of a career. Luckily, many employers will actually sponsor your exams to help you officially become a member of the association you chose.

To become a member of the SOA, or an Associate of the Society of Actuaries (ASA), you’ll need to take exams on both long and short-term actuarial mathematics, statistics for risk modeling and predictive analysis – all in addition to the initial exams and VEE requirements.

If you complete all these exams, and some SOA e-learning courses/modules, you have the opportunity to become a Fellow of the Society of Actuaries (FSA).

You can take one of six tracks to become an FSA: Corporate Finance and ERM, Quantitative Finance and Investment, Individual Life and Annuities, Retirement Benefits, Group and Health and General Insurance. All of these have their own unique sets of exams and courses.

If you wish to become an associate of the CAS, other exams you’ll have to take involve modern actuarial statistics, rate making and estimating claim liabilities, regulation and financial reporting, financial risk and more.

Attain Fellowship

Before you can attain fellowship, you’ll have to pass all 10 of your exams. Fellowship means that you’re a fully qualified and certified actuary. Once you have a full-time job, that’s when you’ll eventually finish your exams. There are 3 more exams to pass to go from associateship to fellowship. It usually takes 2-4 years to pass those exams and meet the other (easier) requirements.

In order to attain fellowship, there are a few other requirements you have to meet in addition to the 3 fellowship-level exams that I mentioned. The specific requirements depend on whether you go the SOA or the CAS route.

Once you’ve completed all the requirements, you’ll either be an FSA (Fellow of the Society of Actuaries) or an FCAS (Fellow of the Casualty Actuarial Society). In Canada, you’ll also apply for FCIA (Fellow of the Canadian Institute of Actuaries)

With these, you will successfully become an actuary who will be in high demand by companies and financial institutions.

Study Abroad Programmes


If you want to become an actuary you will need to build your mathematical, financial and statistical skills at school and university. Most actuarial employers will look for graduates with a maths-based degree at 2:1 or above in subjects including:

  • Actuarial science
  • Mathematics
  • Statistics
  • Economic
  • Engineering
  • Chemistry
  • Physics

If you don’t have a maths-based degree but are passionate about maths and want to qualify as an actuary, we recommend taking our non-member exams before joining the IFoA as a Student.

Our non-member exams will prepare you for the rigorous and demanding IFoA qualification process and give you an insight into the skills and techniques required to progress in an actuarial career.


Owing to level of work and stress involved in been an actuary, you might wondering if the pay is worth it. Here’s the fact, the bigger the stress, the more the pay. But hey!!! You don’t expect an entry-level actuary to earn the same as an actuary who has gotten to the qualification of a manager as an actuary.

Also depending on fellowship, personal qualifications and organization you find yourself, the pay might vary.

A recent analogy states that Actuaries in Nigeria earns around 468,000 NGN per month. Salaries range from 253,000 NGN (lowest) to 707,000 NGN (highest).

An Actuary with less than two years of experience makes approximately 294,000 NGN per month While someone with an experience level between two and five years is expected to earn 371,000 NGN per month, 26% more than someone with less than two year’s experience.

This is the average monthly salary including housing, transport, and other benefits. Actuary salaries vary drastically based on experience, skills, gender, or location. Below you will find a detailed breakdown based on many different criteria.


Depending on the region, the number of years might differ. For most people, it takes between 7 and 10 years to become a fully qualified actuary. Aspiring actuaries in Canada and the U.S. typically spend between 3 and 5 years getting a bachelor’s degree and about 7-8 years passing all ten actuarial exams. Actuarial exams can be written before a bachelor’s degree is completed so there’s usually some overlap in these two-time frames.


Sincerely, becoming an actuary is not worth it.

Studying for over 7 years with so many difficult examinations to pass just to become an actuary had ended not being worth it for most people who became actuaries.

According to a survey performed by CareerExplorer, most actuaries rated their job happiness with 2.5 stars out of 5.

Except you are super intelligent, smart and can easily walk your way through the difficult exams, you may find it difficult becoming an actuary.


Becoming an actuary can be quite difficult. You will have to successfully pass a series of tough examinations called Actuarial Exams.

These exams are so difficult that the pass rate is between 30 to 40%.

The first exam consists of about 30 to 50 difficult multiple-choice questions.

This is not to discourage you from becoming an actuary, but rather to prepare you.


Considering the number of difficult examinations actuaries have to sit for. One may think that only a few people end up becoming actuaries.

But, contrary to that, the number of people sitting for actuary examinations keeps increasing by the year.

So, entry-level actuary jobs are quite competitive.


Also, depending on the region the need for actuaries differ. If you are in continental Europe you are in the right place, thanks to Solvency II. Actuaries are hired like crazy. However, actuaries in these countries are mathematicians statisticians who are further trained in selected Universities in those countries. In practice, actuaries in Germany, Austria, Scandinavia, and other Northern European countries are de-facto data scientist in insurance mathematics.

If you are in USA, I leave you with the words of Mike Lombardi, a past president of the Society of Actuaries, who mentioned about an existential crisis to the way actuaries are trained in USA.

The matter of fact is the insurance companies in USA are hiring more data scientist than actuaries nowadays. Why? Those exams do not make a person a data savvy and above all, they are not in the front line of research. Recently, the SOA, in a desperate move, tried to change the syllabus, but it is too little too late. Hence, don’t get into this path in USA, it is a dead end.


Actuaries can work in organizations with the following departments


Conclusion: How to become an actuary

Actuaries are very important to society and the companies they work for.

Although a lot of people fear that the job of actuaries may be replaced by computers in the future, that is not likely to happen.

Although computers may make their work easier, they will not outrightly displace them.

Find Out


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