CKQ Examines College Majors: Actuarial Science/Math

Each newsletter will provide readers with insight into a specific major that might pique your interest. This segment is all about introducing students to majors (and possibly careers) they may have never considered before. This time around, we will provide information on the Actuarial Science/Math major.

Usually our approach in this segment is to find unusual or not well-known majors for students to get to know better. We have stayed true to our word and have selected a program of study offered at only 116 U.S. colleges and universities. The most notable schools include: Brigham Young University, Carnegie Mellon University, Florida State University, Ohio State University, Penn State University, Purdue University, Temple University, Texas Christian University, UCSB, University of Connecticut, University of Georgia, University of Illinois – Urbana-Champaign, University of Iowa, University of Nebraska, University of Pennsylvania & the University of Wisconsin - Madison.

So what is actuarial science and math? It’s the process of applying mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries perform these tasks. Actuaries evaluate the likelihood of future events (both good and bad), design ways of reducing the chance of that inevitable bad outcome from occurring and work to decrease the impact of those undesirable events when they do occur.

The field is a competitive one, and there are not that many spots to go around (there are only approximately 27,000 certified/registered actuaries, versus approximately 600,000 doctors and 1.8 million accountants) but the idea that you have to have a degree in actuarial science to become an actuary is false. Becoming an actuary only truly requires the passing of a significant number of certification exams, usually requiring between six and ten years to complete. What all actuaries have in common is a love of math and an interest in applying that knowledge in a business setting.

In terms of employment, the environment is international in nature, though much of the hiring is currently done in the Northeastern U.S., and the organizations who are interested in hiring actuaries are fairly plentiful: colleges and universities, banks and investment firms, public accounting firms, labor unions, ratings bureaus, fraternal organizations, and most important insurance companies (they make up over 40% of the industry employment).

At the end of the day, the field is not only interesting, but very well compensated. According to Payscale.com, by the mid-career point, a gainfully employed practitioner of this science is making well over $100,000 a year (currently the third highest paying career field in the U.S.)

For more information on this field, please visit the following website:

http://www.beanactuary.org/why/