Is it Better to Take an Actuarial Degree or to Take the Courses Directly from the Applicable Association?

When considering a career path in actuarial science, you might be wondering whether it is more beneficial to earn a degree in actuarial science or to prepare directly for the actuarial exams offered by the relevant associations. To answer this question, we must first understand the current requirements and the roles that degrees and exams play in the profession.

Understanding the Exam System

The actuarial associations I am familiar with do not offer 'courses' in the traditional sense. Instead, they provide a series of exams designed to test your knowledge and skills in actuarial science. These exams are the cornerstone of becoming a fully qualified actuary. Earning a degree in actuarial science is not a requirement for these exams.

However, it is worth noting that becoming an actuary requires more than just passing these exams. A combination of education, experience, and a substantial understanding of actuarial principles is necessary. Regardless of the degree you choose, you must still pass the exams set by the relevant actuarial body. Therefore, pursuing a degree in any subject, whether it aligns with actuarial science or not, does not exempt you from the exam requirements.

Can You Become an Actuary Without a Degree?

Some might argue that a degree in a STEM subject or any other field is necessary, but in reality, the path to becoming an actuary is more flexible. Many actuaries are not traditional degree holders in actuarial science. Instead, they have a background in fields such as mathematics, statistics, finance, and even humanities. In fact, my own journey before becoming an actuary included degrees in pure mathematics, which are far from actuarial science.

The majority of actuaries I've known through my career have had degrees in STEM subjects, with a surprising number holding advanced degrees. However, there are exceptions. I personally know two Full Fellows FCAS (Fellow of the Casualty Actuarial Society) who have humanities degrees, and one Fellow of the Society of Actuaries (FSA) who did not even graduate from university.

Preparation Strategies and Recommendations

Given the flexibility of the actuarial path, the choice between a degree in actuarial science or direct exam preparation depends on your individual goals and circumstances. Here are some strategies you can consider:

For Those Considering a Degree in Actuarial Science

If you want to prepare for the exams and gain a solid foundation, earning a degree in actuarial science can be a worthwhile investment. It will provide you with the necessary knowledge and skills to help you pass the exams. However, it is crucial to take at least a couple of actuarial exams while you are still in school. Employers are generally more inclined to consider candidates who have already passed some exams, as they demonstrate a level of commitment and understanding of the subject matter.

For Those Interested in Direct Exam Preparation

If you have a strong background in a related field and prefer to focus directly on the exams, you can prepare for and pass them without obtaining a degree. This approach can be efficient and time-saving, but it may require a significant amount of self-discipline and perseverance. You should ensure you have a thorough understanding of the material and are able to apply it in real-world scenarios.

Conclusion

The decision to pursue a degree in actuarial science or prepare directly for the exams remains a personal choice. Both paths can be viable, but they require different levels of dedication and time investment. Ultimately, the key is to ensure you meet the requirements for becoming a fully qualified actuary and make the best use of your background and resources.

Whether you choose to earn a degree or dive straight into the exams, it is important to stay informed about the latest development in the field and to network with other professionals to gain insights and support. The actuarial profession is diverse and challenging, but with the right preparation and support, you can have a rewarding career in this field.