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Accounting and actuarial science are closely related. Both fields focus on the compilation and reporting of numerical data that can be used to support organizational decision-making. Some schools consider actuary programs to be a specialization within accounting.

Actuarial science, however, is focused on risk assessment. To evaluate financial risk, actuaries employ advanced mathematical modeling and statistical analysis strategies. These modeling and analysis skills are what Actuarial Science programs aim to teach.

This guide explains the different types of actuary programs that are offered by educational institutions. The guide provides information on the subject matter and actuarial skills, as well as insight into the career possibilities at each level.

What is Actuarial Science?

The history of actuarial science goes back over 300 years. Actuarial science was developed as insurance companies began to grow in popularity and saw a growing demand for their coverage.

The top actuarial science programs teach students how to use the strategies and tools that actuaries use every day. Although actuarial certification can be optional, it may improve job prospects and earnings potential.

Some schools offer actuarial sciences degrees as specializations in accounting programs. Prospective students need to be aware of the differences between accounting and actuarial sciences.

Accountants keep track of financial transactions and prepare financial statements. They also analyze financial data from an operational perspective. Actuaries, on the other hand, calculate insurance risks and risk instead of monitoring an organization’s financial health.

Many actuary program graduates go on to work in the insurance or finance industries as actuaries. Actuary programs prepare students to pursue careers as business analysts, risk consultants, or investment analysts.

What skills does an Actuarial Science Program teach?

The best actuarial science programs emphasize technical skills and business knowledge. The Society of Actuaries says that successful actuaries have solid foundations in finance, economics and business.

These programs often include intensive sequences of actuarial sciences courses. These courses cover a wide range of mathematical disciplines and help students to develop and use concepts and tools.

• Calculus
• Linear algebra
• Probability
• Statistics

Levels vary in terms of subject matter and specific skill development. Graduate and undergraduate degrees are available for those who wish to learn actuarial science. Actuary programs are generally more complex, rigorous, and specialized at higher degrees.

What are the types of Actuarial Science degrees?

The certificate programs in actuarial science offer a solid introduction. These programs are suitable for those looking to enter the field.

Candidates do not need to have a degree in order to become actuaries. Any test-taker who has the necessary knowledge and skills can take optional certification exams. Graduate and undergraduate degree programs provide a focused path to learning the skills.

These subsections provide more detail.

Certificate in Actuarial Science

The certificate programs in actuarial sciences are primarily designed for learners who want to learn actuary skills quickly. They typically cover 18-21 academic credits and are divided into 6-7 courses. They are usually completed in 2 to 3 academic semesters depending on whether they enroll part-time or fully-time.

Some certificate programs can be used as academic plans that are independent and open to anyone who meets the general admission requirements. Some others are specialized tracks that are available to students with degrees in related fields, such as:

• Accounting
• Economics
• Finance
• Mathematics
• Statistics

Most certificate programs are focused on core actuarial skills and do not cover general accounting topics.

Associate in Actuarial Science

Associate degrees are usually designed to provide the same or similar content to the first two years for bachelor’s degrees in the same area. They are often used by students to gain experience and enter actuarial work. As a stepping stone to a bachelor’s degree, associate degrees can also be useful.

Associate programs in actuarial sciences usually lead to associates of arts (AA), or associates of science (AS). AS degrees are more focused on theory, while AA programs focus more on technical learning. Both designations can be used interchangeably.

Bachelor’s in Actuarial Science

The bachelor’s program provides a thorough introduction to core topics and supplementary subjects in actuarial sciences. They are usually four-year programs, just like most bachelor’s degree programs.

Actuarial science degrees often include accounting concepts. They place a greater emphasis on mathematics, statistical analysis and other technical risk assessment methods. These topics are often less important in accounting degrees.

Because of their emphasis, actuarial degrees are generally better suited for those who want to become risk analysts and actuaries than accounting programs. There are many types of actuarial science degrees offered by schools, including:

• Bachelor of arts (BA)
• Bachelor of applied arts (BAA)
• Bachelor of science (BS, BSc)

BAA programs are rarer than BA/BS/BSc options.

Master’s in Actuarial Science

Students who are looking to improve their professional skills will be most interested in master’s actuary programs. These programs are also useful as preparation for certification exams.

Professionals believe that master’s degrees do not have an impact on an actuary’s career prospects or earning potential. Some master’s programs, however, are specifically designed for students with bachelor’s degrees other than actuarial sciences.

A master’s degree can be a significant asset to an aspirant actuary. They can be completed in two years. This route offers substantial time savings when compared to the cost of a bachelor’s degree.

Doctorate in Actuarial Science

These doctoral programs are offered by schools in actuarial science or as concentrations within a math Ph.D. Working professionals seldom hold these terminal credentials. Doctorates are preferred by researchers and postsecondary academics.

Some actuarial science schools permit applicants with a bachelor’s degree in the field to go directly into doctoral programs. Some require a master’s in actuary or a related field of accounting or mathematics.

Doctoral programs in actuarial sciences are intense, rigorous, and heavy on research. These programs usually take 3-4 years to complete and culminate with a lengthy dissertation project.

Is Actuarial Science better as an Undergrad Degree or Graduate Degree?

A bachelor’s degree in actuarial science can directly support career options in financial risk management. These programs equip graduates with the knowledge and skills to pursue optional certifications.

Some aspiring professionals pursue certification after gaining professional work experience. The bachelor’s degree is a great way to get a job in this field.

The debate continues about whether master’s degrees in actuarial science offer enough value to justify their associated time and cost. Some commentators believe that a combination of a bachelor’s degree and work experience will provide similar knowledge, rendering a master’s unnecessary. Master’s programs offer advanced skills development and prepare students to take certification exams.

A bachelor’s degree is often a good option for learners who want to quickly enter the professional world. Individuals with strong backgrounds in related areas who wish to gain advanced actuarial credentials may also consider master’s programs.

The answer depends on your academic background, career goals, and learning interests.

Common Questions about Actuarial Science Schools

Is actuarial sciences a popular major?

Students are attracted to this field because of the high job prospects for actuaries on the labor market. Students with strong math skills can find employment in actuarial science.

What are the possibilities for an actuarial science education?

Many actuarial science graduate go on to work as actuaries, which are responsible for assessing financial risk in corporations and insurance companies. Some go on to become financial analysts, risk management consultants and business consultants.

In what area do most actuaries specialize?

Many working actuaries studied actuarial science at college. Candidates can also be actuaries if they have a background in economics, accounting, or business.

Are actuaries paid well?

The U.S. Bureau of Labor Statistics reported that actuaries made an average annual salary of $105,900 in 2021. Actuarial science is a popular field for bachelor’s degrees.

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Accounting.com first published the post Actuarial Science degree Overview.

Author: Justin Young

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