This is meant to be an FAQ for the Actuarial reddit. It will primarily be geared towards new actuaries, as that's the only experience I currently have two write about. I expect to use it also as a reference for students looking for information on the profession, who contact me from time to time. I will attempt to keep it up to date as information changes. This information will be US-centric as that's where my experience is from.
Please add your own FAQs in the comments! Corrections are also welcome! I will edit my post as needed.
What do actuaries do?
Actuaries started out in life insurance, and have since branched out to many different fields. The traditional tracks for actuaries are life insurance, health insurance, property/casualty insurance (e.g., auto, home, etc.), and retirement. Newer tracks include finance/enterprise risk management and investment.
Actuaries typically work either for large insurance providers, investment houses, or for consulting firms. The consulting firms can either be for private employers or for insurance providers. However, there's a whole host of other areas where actuaries have worked their way in ("nontraditional") and used their expertise to enhance the specific niche market they've found.
Actuaries basically quantify risk. We work to help businesses understand how much risk they're taking on and how much it costs. Most actuarial work is also done within complex legal and regulatory framework, which must be factored in. It's a complex job involving high levels of quantitative and qualitative skills. Writing abilities are emphasized and required as much as calculation. Actuaries can have full careers being deficient in either, but the best actuaries are well-versed in both.
Who licenses actuaries? What makes one an "official" actuary?
Actuaries aren't really licensed in the traditional sense of the word. Instead, professional organizations give out designations representing various levels of achievement to candidates. Technically speaking, until one has achieved one of these designations, they are still a "student" actuary.
In the US, there are three primary organizations: The Society of Actuaries (SOA), the Casualty Actuarial Society (CAS), and the Joint Board for the Enrollment of Actuaries (JBEA).
The SOA gives out three different designations: Associate of the Society of Actuaries (ASA), Chartered Enterprise Risk Analyst (CERA), and Fellow of the Society of Actuaries (FSA). I'll let them explain what they mean.
The CAS gives out two different designations: Associate of the Casualty Actuarial Society (ACAS) and Fellow of the Casualty Actuarial Society (FCAS). Again, I'll let them explain the meanings .
The JBEA gives out one designation: Enrolled Actuary (EA). This designation qualifies an actuary to be enrolled under the Employee Retirement Income Security Act of 1974 and represent retirement plans in that capacity. It's primarily completed by retirement actuaries, specifically pension actuaries.
What about these actuarial exams?
The exams start out common between all disciplines, then deviate between the different actuarial organizations and tracks. The first few exams are common to all actuaries in the US:
* Exam P/1 - Probability * Exam FM/2 - Financial Mathematics * Exam MLC/3 - Modeling: Life Contingencies * Exam MFE/3F - Modeling: Financial Economics * Exam C/4 - Construction of Actuarial Models
These exams require a thorough understanding of the underlying subject areas as well as college-level mathematics. A thorough understanding of Calculus (read: at least three years) is assumed for all exams. These are all multiple-choice exams, but don't think that makes them easy. Also, there are written examinations at higher levels.
Exams are very demanding on an actuary's personal time. Although almost every actuarial firm will provide exam support in the form of paid study time, study materials, and exam fees, significant non-work time is also required. Most employers pay a raise and/or bonus upon successful completion of the exams.
These are just the common exams, and they get you most of the way to an ASA/ACAS. Beyond that, they branch out between the different organizations, although these are common to both the CAS and SOA. (The JBEA recognizes FM and MLC.)
How do I get started taking an exam?
Even though the exams are numbered, you need not take them in that number. You should probably start with P or FM unless you have special experience in one of the other areas. Typically, one would start with P, but FM has less calculus, so some candidates start there. To pass an exam, most candidates use the source text and a study manual. Some also attend online or real-life seminars.
The "rule of thumb" for exam study is 100 hours per hour of exam. P and FM are both three hours long, so that implies 300 hours of studying. This is a rule of thumb; many successful candidates study less than that, and I'm sure some unsuccessful ones study more.
If you're looking to start taking an exam, recognize this will take good amounts of time on your part. You can find some statistics on pass marks from the SOA. Generally they range from about 50-70% of candidates, depending on the exam. Mind you, these are people who've studied hard; they don't include people who got very low scores. Undergraduate college students: do not expect to walk out of your probability class final and into the exam room and pass without additional effort.
Can I be an actuary without a math degree?
Yes! The actuarial field welcomes career changers and students of other backgrounds! You just have to pass one or two exams first. Most employers will want to see some level of commitment to the field before they agree to take you in and support you through the exams. Again, recognize that there's a huge time commitment here.
What other resources are there for actuaries?
It would be a disservice to you if I didn't bring up the highly-useful Actuarial Outpost Discussion Forum (AO). This website is sponsored by D.W. Simpson, an actuarial recruiting firm, and lots of actuaries go there. Everyone from the newest actuarial students to the presidents of the SOA and CAS will post there. Don't abandon /r/actuary, though!!
I'll fill in other important resources as I find/think of them. The links I've provided to the actuarial organizations and the AO are the best I can think of right now.
How much do actuaries make?
Two recruiting firms, to my knowledge, publish salary data. This is really the best place to get information on how much the actuarial profession pays. Other sources, like the Bureau of Labor Statistic provide some ideas, but they aren't as regimented in their analysis.
S.C. International Salary Survey
What's a recruiter, anyway?
Actuaries can be hard to find, and so the market for job transitions isn't transparent or efficient. Some companies use outside firms to help with their actuarial staffing needs. These companies typically pay recruiters some percentage of the initial salary in exchange for finding a good candidate for the company.
<opinion>Personally, I've found that recruiters aren't very interested in helping you unless you've gotten a designation. Then they're way too helpful.</opinion>