Online Actuary Degree Programs

<p>There are a few steps involved in becoming an actuary, which include completing the necessary education and obtaining certification. There are two organizations that offer certification for actuaries: the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). Each of these agencies requires candidates to take a total of 7-9 exams prior to obtaining initial certification. The steps below outline the pathway to becoming a fully certified actuary. </p> <h3 id="section---Step1.SelectAndBeginACollegeProgram">Step 1. Select and Begin a College Program</h3> <p>In order to become an actuary, you will need to obtain a bachelor's degree (or higher) in a field such as actuarial science, statistics or mathematics. Select a program that contains all of the coursework you will need to complete for certification, such as an actuarial science program, or at least most of it (so that you will have to complete less coursework outside of the degree program). </p> <h3 id="section---Step2.TakeContentTestsAsYouProgress">Step 2. Take Content Tests as You Progress</h3> <p>As you progress through your program, you can take some of the tests that are required for certification. The first two tests for SOA and CAS are on probability and financial mathematics. Both agencies also offer credit towards certification for specific classes taken during your program (for accounting and economics, for example). </p> <h3 id="section---Step3.FinishYourProgramAndExams">Step 3. Finish Your Program and Exams</h3> <p>Continue working on your program and completing and passing your exams. The exams don't have to be taken in the presented order, but the content builds onto previous knowledge, so the presented order is recommended. Additionally, consider completing an internship. Although not required, an internship can be beneficial as it familiarizes you with the industry and can help you choose an area that you are most interested in (such as health benefits, annuities or risk management). </p> <h3 id="section---Step4.EnterTheWorkforceAsAnActuaryAndWorkTowardsCertification">Step 4. Enter the Workforce as an Actuary and Work Towards Certification</h3> <p>After completing your degree, required coursework and exams in probability and financial math, you can qualify for entry-level work as an actuary. Certification as an associate actuary requires about 4-7 more years of study and more exams: CAS awards associate-level certification after six exams, while SOA awards the associate-level certification after seven exams. </p> <h3 id="section---Step5.ObtainFullCertificationAsAFellow">Step 5. Obtain Full Certification as a Fellow</h3> <p>After working for 2-3 years as an associate, you can apply to become a fellow, which gives you full professional actuary certification status. Becoming a fellow requires additional exams, continuing education and a seminar (SOA only). The more exams you passed during your studies, the better your employment opportunities could be. </p> <h2 id="section---HowToChooseASchoolForAnOnlineActuaryDegreeProgram">How to Choose a School for an Online Actuary Degree Program</h2> <p>As you narrow down your school choices for an online actuary degree program, there are several considerations that you should keep in mind. </p> <h3 id="section---ProgramsOffered">Programs Offered</h3> <p>One of the primary considerations in selecting a school is what programs they offer. Online degree programs focused on actuarial science are less common than related programs, such as those in statistics, business analytics and mathematics, but all of these programs can help prepare students for work as actuaries. Consider what content is covered within your program choices to determine how well programs fit your needs. </p> <h3 id="section---ValidationByEducationalExperienceVEE">Validation by Educational Experience (VEE)</h3> <p>In the pursuit of professional certification as an actuary, you'll need to earn credits for courses that you complete within your program - these are referred to as VEE credits. Before selecting your school, ask your admissions counselor if relevant coursework will earn VEE credits, and review the VEE information pages from SOA and/or CAS. </p> <h3 id="section---Accreditation">Accreditation</h3> <p>The schools that offer online programs for future actuaries can be accredited by several different agencies. Attending an accredited school means that you are eligible for more types of financial aid, and transferring credits will be easier if you pursue future programs. Check your school candidates' websites or ask each of your candidates about its accreditation. </p> <h3 id="section---Flexibility">Flexibility</h3> <p>Many online actuary degree programs allow students to take as few, or as many, courses each semester as they desire, but some programs are offered in specific structures and schedules. You may need a full-time or part-time enrollment option or the ability to switch between the two, so make sure to ask each school about the flexibility offered by your intended programs. </p> <h3 id="section---Cost">Cost</h3> <p>The cost of online actuary degree programs varies by school, degree level and student. In most cases, the primary expense is tuition (usually charged per credit hour), and other expenses can include registration fees and course fees. Ask your admissions representatives for comprehensive lists of program costs and information on any available savings. </p> <h3 id="section---AdmissionsRequirements">Admissions Requirements</h3> <p>Depending on your educational background, you may not be eligible for all online actuary degree programs. While bachelor's degree programs are available to students with a high school diploma or GED, graduate-level programs will require you to hold a degree in a related field. Carefully review the admissions requirements for each candidate program. </p> <h2 id="section---ActuaryDegreeProgramOptions">Actuary Degree Program Options</h2> <p>In order to become an actuary, you don't have to complete a program in actuarial science. Actuaries have degrees in fields such as mathematics, statistics and finance. As long as you learn the content listed in the SOA or CAS requirements you can still become a certified actuary. Depending on your previous college education (if any) there are multiple degree options available that can put you on the path to certification. </p> <ul><li><b>Bachelor's Degree</b> - Bachelor's degree programs are available online and take around four years to complete. They are typically open to students with a high school diploma or GED and are focused in a related field, such as accounting or mathematics. </li><li><b>Master's Degree</b> - Online programs in actuarial science and related fields are available to students who have already completed a bachelor's degree and take around two years of full-time study to complete. </li></ul><h2 id="section---CommonCourses">Common Courses</h2> <p>The specific courses included in online actuary degree programs vary by degree level and program focus (such as actuarial science or statistics). However, students pursuing an actuary program and certification path are likely to take some of the courses listed below. </p> <ul><li><b>Probability</b> - This course provides students with a foundational understanding of probability theory and may include topics such as random variables, sets and probability axioms. </li><li><b>Mathematical Statistics</b> - Students learn about the theories of mathematics in statistics and topics such as distributions, correlation, hypothesis testing and variance. </li><li><b>Financial Mathematics</b> - This course examines such topics as pricing, managing liabilities, capital budgeting, duration and cash flow streams. </li><li><b>Microeconomics</b> - Students learn about economic characteristics and activities within the United States, including supply and demand, resource allocation and employee wages. </li><li><b>Time Series Applications</b> - This course explores time series methods of regression using various types of data and forecasts and may include topics such as autoregressive and univariate models. </li><li><b>Actuarial Statistics</b> - This course further explores regression topics as well as how time series models can be applied directly to actuarial science. </li><li><b>Accounting</b> - This course explores financial and managerial accounting topics, such as key financial statements, accurate reporting, capital structure, performance measures and dividends. </li></ul><h2 id="section---SchoolsWithOnlineActuaryDegreePrograms">Schools with Online Actuary Degree Programs</h2> <p>Online actuary programs come in many forms and lead to different degrees. It's important to note that online actuary programs, including those in mathematics, statistics and actuarial science, are not as commonly offered online as other programs (such as business administration). However, dozens of schools across the United States offer actuary programs at several different levels, and students can find approved schools through SOA's website, although it does not offer a filter option for online programs. </p> <p /> <table border="1"><tr><th>School Name </th><th>Location </th><th>Programs </th><th>Per-Credit Tuition</th></tr> <tr><td>Lock Haven University </td><td>Lock Haven, PA </td><td>Professional Science Master's in Actuarial Science </td><td>$516 (in-state, 2020-2021), $774 (out-of-state, 2020-2021)</td></tr> <tr><td>Columbia University </td><td>New York, NY </td><td>Actuarial Science Certification Program (graduate) </td><td>$2,182 (2019-2020)*</td></tr> <tr><td>Indiana University </td><td>Bloomington, IN </td><td>Bachelor of Science in Mathematics </td><td>$230 (in-state, 2020-2021), $331 (out-of-state, 2020-2021)</td></tr> <tr><td>University of Washington </td><td>Seattle, WA </td><td>Master of Science in Applied Mathematics </td><td>$1,020 (2020-2021)</td></tr> </table><p><i>All information provided by school websites.</i> </p> <h2 id="section---ProfessionalCertificationForActuaries">Professional Certification for Actuaries</h2> <p>The two organizations that issue professional certification for actuaries, the SOA and the CAS, specialize in different areas. SOA certification is for actuaries working in areas such as health insurance, life insurance, investments and retirement benefits, while the CAS offers certification to actuaries working in casualty and property fields. </p> <p>Both organizations require budding actuaries to take specific courses for credits (VEE credits) and pass several exams that test candidates' knowledge on such areas as probability, financial reporting, actuarial mathematics and risk modeling. Certification applicants may complete part of these requirements during school or undertake the process after school, although completing the requirements while still in school helps to expedite the process and can ideally land them a job after graduation. </p> <p>By the time candidates obtain their initial certification at the associate level, they will have completed several exams and courses required by the organization. The associate certification enables actuaries to work in lower-level positions and develop experience. After two or three years, individuals can apply for the full certification (fellow certification), which requires them to take and pass other tests, attend a seminar (SOA) and complete continuing education hours. </p> <h2 id="section---CareerOptionsForGraduatesOfOnlineActuaryPrograms">Career Options for Graduates of Online Actuary Programs</h2> <p>Graduates of online actuary, mathematics and similar programs can pursue several different careers, depending on their interests, specific coursework and experience. </p> <h3 id="section---Actuaries">Actuaries</h3> <p>Actuaries assess the monetary value of uncertainty and risk using financial theory, mathematics and other analytical skills. They assist clients with decreasing costs of potential risks by compiling and analyzing data, calculating the probability of events and explaining their conclusions to clients and organizational leaders. Actuaries can work in several different areas, such as life insurance, retirement benefits, health insurance and property insurance. They usually work with other professionals, such as accountants and analysts, and sometimes apply their skills to assist individuals and organizations with investment strategies. The median annual salary of actuaries was $108,350, according to U.S. Bureau of Labor Statistics figures for 2019. The median salary of actuaries is further broken down by industry below. </p> <p /> <table border="1"><tr><th>Industry </th><th>Median Salary (2019) </th><th>Estimated Job Growth (2018-2028)</th></tr> <tr><td>Finance and Insurance </td><td>$110,020 </td><td>17%</td></tr> <tr><td>Government </td><td>$101,740 </td><td>1%</td></tr> <tr><td>Management of Companies and Enterprises </td><td>$98,880 </td><td>23%</td></tr> <tr><td>Professional, Scientific, and Technical Services </td><td>$110,960 </td><td>39%</td></tr> </table><p><i>All career information is provided by the U.S. Bureau of Labor Statistics</i> </p> <h3 id="section---OtherCareerOptions">Other Career Options</h3> <p>In addition to working as actuaries, actuary degree program graduates may qualify to work in one of the careers listed below. </p> <ul><li><b>Economists</b> - Economists collect and review data in order to study resource production and distribution. They use various quantitative and qualitative methods for analysis, including statistics and mathematics, in order to advise clients on economic activity and trends. While some positions are available to individuals with a bachelor's degree, economists typically need a graduate degree in a field relating to economics and mathematics. </li><li><b>Budget Analysts</b> - Budget analysts assist organizations with financial management by monitoring spending and creating and revising budgets. Their duties can include reviewing and approving budget proposals, compiling budgets from various departments, analyzing proposed budgets and making recommendations. Budget analysts usually need a bachelor's degree and knowledge of applicable subjects, such as statistics, finance, accounting and economics. </li><li><b>Personal Financial Advisors</b> - Personal financial advisors assist individuals with managing their finances, including investments, savings plans and taxes. Their duties can include assisting clients with specific financial goals, providing financial education to clients, recommending investment decisions and maintaining up-to-date knowledge of products and regulations. These professionals usually need to have a bachelor's degree in a field such as finance, mathematics or economics. </li><li><b>Insurance Underwriters</b> - Insurance underwriters determine whether or not to give coverage to clients as well as what the terms of coverage are and the premiums. Their duties often include reviewing the information on insurance applications, measuring the potential risk of providing insurance, contacting doctors and other professionals and determining the amount of insurance to offer, if any. Insurance underwriters can have a bachelor's degree in various fields, preferably with coursework in economics, finance and mathematics. </li><li><b>Mathematicians and Statisticians</b> - These professionals use statistical and mathematical methods to analyze information and solve problems. Their duties often include determining what data is needed, developing models and interpreting and presenting their findings. These professionals need a master's degree in most cases, although some bachelor's degree candidates may find entry-level positions. Many employers prefer students to have a degree in mathematics, statistics, economics or a similar field. </li></ul><p /> <table border="1"><tr><th>Job Title </th><th>Median Annual Salary (2019) </th><th>Estimated Job Growth (2018-2028)</th></tr> <tr><td>Economists </td><td>$105,020 </td><td>8%</td></tr> <tr><td>Budget Analysts </td><td>$76,540 </td><td>4%</td></tr> <tr><td>Personal Financial Advisors </td><td>$87,850 </td><td>7%</td></tr> <tr><td>Insurance Underwriters </td><td>$70,020 </td><td>-5%</td></tr> <tr><td> Mathematicians and Statisticians </td><td>$92,030 </td><td>30%</td></tr> </table><p><i>All career data provided by the U.S. Bureau of Labor Statistics</i></p>