Last Updated on March 23, 2024 by Qusai Ahmad
Can an Accountant Become an Actuary?
Suppose you are an accountant interested in switching careers to become an actuary. In that case, you may wonder if it is possible and what steps to take. The answer is yes, you can become an actuary, but you must invest some time and effort to make the transition.
Accountants and actuaries are professionals who work with numbers and financial data but have different roles and responsibilities. Accountants create and maintain the financial records of businesses and other entities and ensure their accuracy and compliance. Actuaries estimate the economic impact of uncertain future events and help companies to manage their risks and opportunities.
To become an actuary, you must pass a series of exams administered by the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS), depending on your area of interest. These exams cover probability, statistics, finance, economics, and actuarial science. You will also need to complete some professional development courses and meet the ethical and educational standards of the actuarial profession.
As an accountant, you may have some transferable skills that can help you prepare for the actuarial exams and career. For example, you may have a strong background in accounting, finance, and business, which are relevant for some exams. You may also have experience working with spreadsheets, databases, and software tools that can help you perform actuarial calculations and analysis.
However, you will also need to learn some new skills and concepts specific to the actuarial field. For example, you must master advanced mathematics and statistics, such as calculus, linear algebra, and regression. You will also need to learn how to model and project different scenarios and outcomes, such as mortality, morbidity, and claims. You will also need to understand the principles and practices of insurance, pensions, and other financial products and services.
To make the transition from accounting to actuarial, you may want to consider the following steps:
- Research the actuarial profession and the exam requirements. You can find more information on the SOA and CAS websites.
- Assess your current skills and knowledge and identify the gaps you need to fill. You can use each exam’s syllabus and sample questions to guide your study plan.
- Enroll in some courses or self-study materials to help you prepare for the exams. You can find various resources online, such as textbooks, videos, podcasts, and practice tests.
- Register and schedule your exams. Depending on your availability and preference, you can take the exams at different times and locations.
- Apply for actuarial jobs or internships that match your qualifications and interests. You can use online platforms like Indeed to search for opportunities and submit your resume and cover letter.
- Network with other actuaries and join professional associations, such as the IABA, that can support your career development and growth.
Becoming an actuary from an accountant takes work. Still, it is achievable if you work hard and learn new things. By following these steps, you can make a career change and enjoy the benefits of being an actuary, such as high demand, high salary, and high satisfaction.
