How to Become an Actuary: A Smart Career Move in Numbers

Actuaries aren’t just number crunchers — they’re decision-makers behind some of the most critical financial systems in the world. If you’re analytical, detail-oriented, and want a career that combines math with real-world impact, becoming an actuary might be the perfect path for you.

It’s not just theory either. The actuarial profession ranks consistently among the top careers for job satisfaction, stability, and earning potential. According to Canadian Business, actuaries were among the top 20 best careers in recent years — and the demand hasn’t slowed down.

The profession has seen an 87% growth in just the past five years. With employers across insurance, finance, healthcare, and tech actively hiring actuaries, the odds are in your favor.

So, how do you become one?

This guide walks you through every step; from choosing your degree to passing your first actuarial exam. Whether you’re just starting out or switching careers, we’ll show you the clearest path to becoming a credentialed actuary.

Thinking of becoming an actuary? Start your journey with AnalystPrep’s Actuarial Exam Study Packages – built to help you pass faster and smarter.

What Does an Actuary Do?

Actuaries are professionals who assess and manage risk using math, statistics, and data modeling. Their job is to help businesses — especially insurance companies, pension funds, and government agencies — make smarter financial decisions when faced with uncertainty.

If you’ve ever wondered how insurance companies set premiums or how retirement plans forecast future payouts, that’s actuarial science in action.

Common Tasks Include:

• Analyzing data to estimate the probability and financial cost of events (e.g., illness, accidents, or death)
  
• Designing and pricing insurance policies, pension plans, and investment strategies
  
• Modeling long-term financial outcomes to guide risk management decisions
  
• Communicating insights to executives, clients, and regulators
  

Actuaries often work in:

• Insurance (life, health, property, and casualty)
  
• Consulting
  
• Government agencies
  
• Corporate finance and employee benefits
  
• Risk management and enterprise analytics
  

Curious about how data science overlaps with actuarial work? Here’s how the two fields are connected.

How to Become an Actuary (Step-by-Step)

Becoming an actuary doesn’t happen overnight — but the steps are clear. Whether you’re a student, career switcher, or self-starter, this roadmap outlines exactly what you need to do.

Step 1: Earn a Bachelor’s Degree

A degree is not strictly required, but most employers prefer it. Common majors include actuarial science, statistics, mathematics, economics, or finance.

Not sure which degree is best for you? We’ll cover that soon.

Step 2: Pass Your First Actuarial Exams

Start with Exam P (Probability) and Exam FM (Financial Mathematics) — the first two preliminary exams accepted by both SOA and CAS. Passing just one exam can qualify you for an entry-level role.

 Start preparing for Exam P or Exam FM with AnalystPrep.

Step 3: Complete VEE Requirements

Validation by Educational Experience (VEE) credits cover topics like Applied Stats, Corporate Finance, and Economics. These are usually fulfilled through college courses or approved online programs.

Step 4: Gain Internship or Entry-Level Experience

Many employers expect internship experience before hiring full-time. Aim to secure an internship after passing at least one exam.

Step 5: Decide Between SOA and CAS

Choose your track based on your interest:

• SOA: Life, health, pensions, enterprise risk
  
• CAS: Auto, property, liability insurance
  

We’ll break down both shortly.

Step 6: Pass Remaining Exams & Meet Certification Requirements

Depending on your chosen track, you’ll need to pass a total of 6–10 exams, complete modules, and attend professionalism courses to become certified as an ASA, ACAS, FSA, or FCAS.

 Here’s your complete guide to exam preparation.

TL;DR: Here’s What You’ll Need

• A degree (recommended)
  
• Pass 6–10 exams over several years
  
• Choose SOA or CAS
  
• Gain work experience
  
• Complete VEE and modules
  

Ready to start prepping? Get AnalystPrep’s complete actuarial exam package and start your journey today.

SOA vs CAS: Which Path Should You Choose?

When it comes to actuarial certification in the U.S., you have two main routes: the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). Both are highly respected — but the one you choose depends on your career goals.

 Society of Actuaries (SOA)

The SOA is the go-to certification body for actuaries working in:

• Life insurance
  
• Health insurance
  
• Retirement/pensions
  
• Finance and investment
  
• Enterprise risk management (ERM)
  

Once you complete the SOA’s requirements, you can earn the ASA (Associate of the Society of Actuaries) and eventually the FSA (Fellow of the Society of Actuaries) designations.

Casualty Actuarial Society (CAS)

The CAS specializes in property and casualty (P&C) insurance, which includes:

• Auto insurance
  
• Homeowners insurance
  
• Commercial liability
  
• Workers’ compensation
  

The CAS leads to the ACAS (Associate of the CAS) and FCAS (Fellow of the CAS) certifications.

SOA vs CAS: Which Is Better?

Neither is objectively better — it’s all about where you want to specialize. If you’re interested in pensions, life insurance, or finance, go with SOA. If you’re drawn to auto or property coverage and enjoy modeling real-world risks like natural disasters or liability, CAS is the way to go.

Pro tip: You don’t need to commit right away. Both SOA and CAS share the same preliminary exams (P and FM), so you can decide your path later.

See our complete breakdown of SOA Exam P and FM prep resources

Actuarial Exam Requirements & Structure

No matter which path you choose — SOA or CAS — every actuary must go through a series of rigorous professional exams. These tests are at the core of the profession and are known for being both challenging and rewarding.

Shared Preliminary Exams (SOA & CAS)

Most actuarial students begin with the same set of jointly administered exams. These foundational tests are recognized by both certification bodies.

Here’s a breakdown:

Exam	Focus	Learn More
Exam P	Probability theory & risk modeling	Start preparing →
Exam FM	Financial mathematics, interest theory	Explore resources →
Exam SRM	Statistical modeling & regression	Included in SOA path
Exam FAM	Fundamentals of actuarial mathematics	Replaced IFM & LTAM
Exam STAM	Short-term insurance modeling	SOA track
Exam PA	Predictive analytics using R & Excel	SOA track

Note: The IFM exam has been retired. Its topics are now integrated into FAM and other modules.

How Many Exams to Become an Actuary?

Depending on your goal (ASA, ACAS, FSA, FCAS), you’ll need to pass between 6 and 10 exams in total, often spread over 5 to 10 years.

Here’s a simplified summary:

Credential	Body	Exams Required	Extras
ASA (Associate)	SOA	~6–7	VEE, modules, professionalism
ACAS (Associate)	CAS	~6–7	Modules, online courses
FSA (Fellow)	SOA	9–10	Track-specific requirements
FCAS (Fellow)	CAS	9–10	Case-based assessments

What to Expect from These Exams

• Pass rates are typically low — often below 50% — so preparation is key.
  
• Exams are computer-based and offered at various times throughout the year.
  
• You don’t need to take them all at once. Most candidates pass one every 6–12 months while working or studying.
  

Want to know the exam dates? Here’s everything you need to know about 2025 actuarial exam dates

 Get full access to AnalystPrep’s complete actuarial study package — includes exam prep, practice questions, and adaptive learning tools.

Life vs Non-Life Actuaries: Choosing a Discipline

Once you’ve passed your preliminary exams and chosen your certification path (SOA or CAS), you’ll specialize in a specific actuarial discipline — usually as a life or non-life (property and casualty) actuary.

Each discipline focuses on different types of risk, industries, and tools. Let’s break it down.

Life Actuaries (SOA Track)

Life actuaries typically work in insurance, retirement, and healthcare. They analyze long-term risks related to human life and well-being.

Common Areas:

• Life insurance – Assess mortality risk to price policies accurately
  
• Health insurance – Evaluate the cost of future medical claims
  
• Pensions – Design and manage retirement plans
  
• Annuities & Disability insurance – Model payouts based on longevity and illness
  
• Investment risk modeling – Help companies manage long-term reserves
  

Life actuaries often work for life insurance firms, health providers, or pension consulting companies.

Non-Life (Property & Casualty) Actuaries (CAS Track)

Non-life actuaries deal with more short-term, unpredictable risks involving property, accidents, and legal liability.

Common Areas:

• Auto insurance – Estimate accident frequency and repair costs
  
• Homeowners insurance – Evaluate risks like fire, flooding, and theft
  
• Commercial insurance – Price business liability and property coverage
  
• Workers’ compensation – Predict costs of workplace injuries
  
• Product & malpractice liability – Model claims from faulty products or professional errors
  

Non-life actuaries often work in general insurance, reinsurance, or government agencies regulating risk.

Which Should You Choose?

• Choose life if you enjoy modeling long-term risk and working in health, pensions, or investment-heavy areas.
  
• Choose non-life if you’re interested in dynamic pricing, legal exposure, or short-term loss modeling.
  

And remember — your choice of SOA vs CAS largely determines your discipline. But early in your career, you can explore both before specializing.

 Want to explore the connection between actuarial science and predictive data work? Check out this blog on how data science intersects with actuarial work

Actuary Salary and Career Growth

Let’s be honest — one reason many people consider becoming an actuary is the earning potential. And for good reason: actuaries are some of the best-paid professionals in the analytics and finance space, with salaries growing steadily as you advance through the certification levels.

What’s the Starting Salary?

If you’ve passed just one or two preliminary exams (like Exam P or Exam FM), you’re already employable. Many entry-level actuarial analysts in the U.S. earn $55,000–$70,000 per year, depending on their location and internship experience.

Want help passing your first exams? Here’s everything it takes to pass Exams P and FM

Mid-Career and Certified Actuary Salaries

As you move toward full certification and earn Associate status (ASA or ACAS), your income typically jumps to $90,000–$130,000. After reaching Fellowship (FSA or FCAS), it’s not unusual to earn $150,000 to $250,000+, especially with management responsibilities or specialized roles.

Stage	Typical Salary Range (USD)
0–2 Exams Passed	$55,000–$70,000
Associate (ASA / ACAS)	$90,000–$130,000
Fellow (FSA / FCAS)	$150,000–$250,000+

Career Outlook and Demand

The demand for actuaries remains consistently high. Industries are actively hiring due to:

• Increased focus on risk modeling and data analytics
  
• The expansion of insurance and pension markets
  
• Regulatory demand for risk-based capital and solvency assessments
  

According to the U.S. Bureau of Labor Statistics, the actuarial profession is projected to grow 23% through 2032, much faster than average.

Want to fast-track your exam prep and job-readiness? Explore AnalystPrep’s full exam course bundle and get started today.

 What Degree Do You Need to Become an Actuary?

Technically, you don’t need a specific degree to become an actuary — passing the professional exams is what really matters. But most employers still prefer candidates who hold at least a bachelor’s degree, and the right major can give you a solid head start.

Popular Majors for Aspiring Actuaries

Major	Why It Helps
Actuarial Science	Covers core topics like finance, stats, and probability. Often includes prep for Exams P & FM.
Statistics	Builds a strong foundation in data analysis and modeling. Great for both SOA and CAS paths.
Mathematics	Deepens your understanding of calculus, probability, and logic — all essential for the exams.
Economics	Teaches market behavior, opportunity cost, and risk — useful for investment-related roles.
Finance	Helps you understand financial instruments, cash flows, and asset management.

What If I Didn’t Major in These Fields?

No problem. Many actuaries come from engineering, physics, computer science, or even business backgrounds. What matters most is that you’re willing to put in the work to pass the exams.

Already through college? You can still stand out by picking up VEE-approved courses or self-studying the essentials.

 Explore AnalystPrep’s foundational study materials to supplement any background.

What Is VEE (Validation by Educational Experience)?

VEE — or Validation by Educational Experience — is a requirement for actuaries pursuing Associate-level credentials (ASA or ACAS). While these topics aren’t covered in-depth on the early actuarial exams, they’re considered essential for real-world actuarial work.

What Topics Are Covered by VEE?

You’ll need to show competence in three areas:

1. Economics
   
2. Corporate Finance
   
3. Applied Statistical Methods
   

These topics aren’t tested directly in the preliminary exams because they’re better learned through coursework.

 How to Fulfill VEE Requirements

To receive credit, you must:

• Pass Exam P and Exam FM (both must appear on your SOA/CAS transcript)
  
• Complete a VEE-approved college course with a grade of B- or higher
  OR
  
• Take an approved online course from a recognized provider
  

For a full list of approved VEE courses, check the SOA’s official VEE page.

If you already covered any of these topics in college, you may be closer to qualifying than you think.

Just getting started? Our complete actuarial package is the perfect companion to your VEE and exam prep.

Gaining Work Experience as an Aspiring Actuary

Passing exams is a huge part of becoming an actuary — but it’s not the only thing that matters. To get hired (and eventually certified), you’ll also need hands-on experience. Most employers look for candidates with at least one internship or entry-level role under their belt.

Why Experience Matters

Actuarial work is technical, yes — but it’s also collaborative. You’ll work with product teams, underwriters, data scientists, and managers. Gaining early experience helps you:

• Apply what you’ve learned from exams in a business setting
  
• Strengthen your resume and stand out in competitive applicant pools
  
• Qualify for ASA or ACAS credentials, which require validated work experience
  

 Where to Start

•  Internships – Best pursued after passing 1–2 exams (especially P or FM)
  
• Volunteering – Smaller nonprofits or startups may offer unpaid experience
  
• Data/Finance roles – Even if not “actuarial,” jobs that involve modeling or analysis are highly relevant
  

Pro tip: Don’t wait to pass all your exams before applying. Most actuaries land their first job after just one or two exams.

Need a roadmap? Here’s your guide to preparing for Exams P and FM — a solid first step before applying for internships.

Frequently Asked Questions About Becoming an Actuary

What exams are required to become an actuary?

Most actuaries begin with Exam P (Probability) and Exam FM (Financial Mathematics). These are part of a series of 6–10 exams required to become certified under SOA or CAS. You’ll also complete additional modules, VEE credits, and a professionalism course along the way.

Start preparing for your first actuarial exam with AnalystPrep.

How many actuarial exams do I need to pass?

To earn an Associate-level credential (ASA or ACAS), you’ll typically need to pass 6–7 exams. For Fellowship (FSA or FCAS), expect 9–10 exams total, depending on your specialization.

What’s the difference between SOA and CAS?

• SOA focuses on life, health, pensions, and enterprise risk.
  
• CAS is geared toward property and casualty insurance like auto or homeowners coverage.
  The first few exams (P, FM, etc.) are shared, so you can decide your path later.
  

Can I become an actuary without a math degree?

Yes. While majors like actuarial science, statistics, or mathematics help, many successful actuaries come from backgrounds in engineering, economics, finance, or computer science. What matters most is your ability to pass the exams.

How long does it take to become an actuary?

It typically takes 6 to 10 years to become a fully certified actuary (FSA or FCAS), though many candidates begin working after passing just 1 or 2 exams. Most study while working full-time and take 1–2 exams per year.