Preparing for a Career in the Actuarial Sciences
A Guide for Applied Mathematics and Statistics Majors
What is an Actuary?
An actuary is a mathematical scientist who is an expert at evaluating risk. Actuaries understand the nature of risk, how to manage risks, and how to place a price on risks.
To understand the nature of risk, actuaries need a strong background in probability and statistics. To manage risk, they need to understand how to make optimal decisions in the face of uncertainty using the analysis techniques of optimization and operations research. Furthermore, to understand how much to pay to guard against future risks, actuaries need to understand investment science and economics.
Actuaries are hired by insurance companies, as well as other financial services organizations. They are highly respected and well paid professionals who often rise to top leadership positions in their companies. Various publications (such as Money magazine and Jobs Rated Almanac) consistently rank actuary among the best careers available.