• Have you ever wondered how insurance companies set premiums? Chances are, an actuary was involved. Actuaries assess various risks, analyze the potential financial impact of those risks and find ways to manage or control them. A majority of actuaries work in the insurance industry, assessing everything from the likelihood of a natural disaster occurring to the chances a 16-year-old driver will have a car wreck.

The work of an actuary is not easy: the potential job candidate must possess a solid knowledge of mathematics—particularly statistics and probability—and strong communication skills. Because the primary role of the actuary is to assess risk, the job requires strong analytical skills. Still interested in becoming an actuary? Read on for more information on educational requirements, specific specialties and finding a job.

• When considering a career as an actuary, know that a bachelor's degree is essential—and preferably one with a concentration in mathematics and general business. You may also benefit from courses in communication; actuaries frequently report to companies on their findings, making good communication skills essential.

1. If you are a high school student hoping to become an actuary, take as many advanced math courses as possible, including calculus and statistics. This will help to build a foundation for your college studies.
2. Once you enroll in college, strive to major in subjects related to the actuary profession—mathematics, economics, applied statistics or finance. Take general business courses as well.
3. Some colleges offer an actuarial science program, with emphasis on mathematics and finance.Be An Actuary: Preparing for an Actuarial Career While in College
4. Typically, a master's degree is not required to become an actuary.
5. Consider working as an intern during your studies. Internships can offer valuable on-the-job training and could lead to valuable contacts with future employers.
6. Take practice actuary exams with the hope of passing at least one before you graduate from college.

• Actuaries are highly skilled professionals who typically complete years of schooling, internships and exams before obtaining professional status. Exams are given by the Casualty Actuarial Society (CAS), the Society of Actuaries (SOA), and the American Society of Pension Actuaries (ASPPA), with the goal of obtaining the levels of associateship and fellowship. Many of the exams are given to working actuaries over a period of a decade.SOA: Exams and Requirements In addition, actuaries are required to have licenses.Bureau of Labor Statistics: Occupational Outlook Handbook, 2008-09 Edition: Actuaries

1. Pass the actuarial exams. Actuaries can sometimes begin work and then take the initial exams, which often require months of study. Other companies require the actuary to have passed at least one actuarial exam before landing a job.Purdue University Department of Mathematics: What is an Actuary?
2. The website Be An Actuary has an interactive exam you can take online to give you an idea of the knowledge needed for the job.Be An Actuary: Online Exam: College
   1. The Society of Actuaries exams focus primarily on the fields of life and health insurance, along with finance and investment.
   2. The Casualty Actuarial Society exams certify actuaries to work in property and casualty insurance.
3. Various levels of professional certification can be obtained through the actuarial exams. The level of actuary's associate can be obtained within four to six years, and a fellowship can be obtained in the years that follow.eHow: How to Become an Actuary

• Once you have obtained the education and certification necessary to become an actuary, you should decide on a special area of expertise. While all actuaries assess risks and formulate plans to lessen those risks, they do this in different areas. Some actuaries work with property and life insurance, while others work with pension plans for companies or as consultants.

1. Some actuaries choose to specialize in life and health insurance. This often involves the grim tasks of assessing the likelihood of illness as well as mortality rates to determine premiums for customers of insurance companies.
2. Actuaries who work in property and casualty insurance assess risks in a different way. Many try to determine the likelihood of a major natural disaster striking a particular area to determine property insurance premiums.
3. An actuary can be retained for corporate work managing credit and security offerings. Actuaries working in this area often deal with pension plans.
4. Some actuaries choose to work as consultants. An actuary can be contracted by a specific company to evaluate pension plans or assess the level of risk for on-the-job accidents.

• Once you have completed your education and passed the initial exams required to become an actuary, it is time for the job hunt. If you have already been working as an actuary while studying for the licensing exams, are you looking to change employers? If so, here is what to do:

1. Write a resume if you don't already have one. Include your educational and training experience, including any actuarial exams you have already taken. List any applicable experience you may have, including internships. For more information on resume writing, check out Mahalo's guide on How to Write a Resume.
2. Begin sending out your resume to potential employers. Not sure where to start? Online job sites like Monster.com and Careerbuilder.com are a good bet. In addition, check sites geared specifically toward actuaries, like the American Academy of Actuaries.
3. Join and become familiar with any professional actuary organizations, including the Casualty Actuarial Society and the Society of Actuaries.
4. How plentiful are actuary jobs? Experts predict the field will continue to experience overall growth, with actuary employment increasing by roughly 24% through 2016.Bureau of Labor Statistics: Job Outlook The need for pension actuaries is an exception, however, as more companies switch from pensions to investment-based retirement funds.
5. Will you be able to earn a good living as an actuary? According to the U.S. Bureau of Labor Statistics, actuaries earned an average annual salary of $82,800 in May of 2006. Salaries ranged from $46,470 to as much as $145,600.Bureau of Labor Statistics: Earnings

• While becoming an actuary is challenging, the potential rewards can be great. Salaries for actuaries are generally high, and the Jobs Rated Almanac has consistently rated the job of actuary among the top occupations in the U.S.Jobs Rated Almanac: A ranking of 250 jobs... The Wall Street Journal: Doing the Math to Find the Good Jobs (January 26, 2009) With job projections showing continued growth in the field, becoming an actuary is anything but risky business!