A starting compensation of USD 70,000 to USD 80,000, a 97.5 percent employment rate, and a pinch of passion for numbers – if that's what you're in for, a career in actuarial science would be the right fit for you.

Being a Commerce student, the constant bickering of friends and family regarding how only a restricted domain of professions is available to business graduates has always bothered me. However, there is a string in this wide spectrum of profit-making minds who have the potential to spark a lucrative career instead of hanging the usual BBA tag around their necks; it's us students with a subject called Mathematics as a "Trojan Horse". 

What does an actuary do?

Calculus, Probability, Statistical Distribution, and Hypothesis Testing; we've been diving into the depth of these realms with a constant curiosity regarding to what extent these are actually applicable in our practical lives. This is where it all comes true!

Actuarial Science is about applying statistics, mathematics and business skills to measure and manage risk. Examples of traditional applications of Actuarial Science range from determining the cost of insurance premiums, advising a company on their pension plans or managing financial assets and liabilities.

Nowadays, with AI assisting significantly in analysing past and present data to solve real-world business problems; Actuaries are applying their skill sets in non-traditional roles helping to solve some of the big-picture problems in our society. From analysing the impact of emerging climate change on business plans to finding solutions to support our ageing population.

Where can you land a job after graduation?

The U.S Bureau of Labour Statistics suggests that actuaries have projected job growth of 22 percent for the next ten years with a median annual wage of USD 120,000 as of May 2023 which is a significant beat against typical engineering professions with only 11 percent growth and a yearly compensation of USD 99,000. Surprisingly, even in the box office-breaking cinema 'The Accountant' starring Ben Affleck; the phrase "actuarial sciences are experiencing tremendous growth as well" being stated by the star himself is to an extent 'ironic'. Typical job desks where such math geeks land a job are inclusive of insurance actuary, pension actuary, actuarial advisory, consulting, data analyst, or investment management with designations at demanding insurance firms such as AIG, Prudential, MetLife, Zurich Insurance groups as well as Accounting firms such the BIG 4 and last but not the least elite investment banking monopolists such as Goldman Sachs, JP Morgan & Chase, and Blackrock.

What's the Catch?

Rigorous Exams: The road to becoming a certified actuary is completing a series of rigorous professional examinations, which can take several years and demand much study time. The majority of these tests are administered by actuarial associations such as the Institute of the Faculty of Actuaries, UK, and the Casualty Actuarial Society. 

Work-life balance challenges: Depending on the workplace, actuaries may be required to work long hours while studying for tests, particularly during peak seasons such as year-end reporting or regulatory changes. However, this is just conditional until you become an Associate Actuary.

High-stress levels: Managing financial risk may lead to a stressful work atmosphere, especially when dealing with deadlines or difficult computations. 

How to prepare yourself for this journey?

Most people realise the existence of such a lucrative field usually after passing their matriculation when their career domains experience certain restrictions. The best we can do at this point in time is design our subject combinations which best complement this career path. For A level students, a mixture of Maths, Economics, Accounting and possibly Further Mathematics (at least at AS level) would be the ideal outlook. Eventually, we should be aiming for an undergraduate major in either Mathematics, Statistics, Economics or Finance. The rest of the pieces of the puzzle would fit in by themselves.

The author is an AS level candidate from Scholastica.