Think actuarial science is only for math geniuses or confined to the world of insurance? Think again—our expert coaches tackle five common myths and share what life as an actuary *really* looks like!
Surprisingly, there are quite a few misconceptions about actuarial science! Some say it’s only for math geniuses, while others think it’s all tedious number crunching.
To debunk these myths, we went straight to our experts: coaches Fred, Jon, Kong Foo, and Larry. Check out their stances on five common myths about life as an actuary.
Myth 1: Actuarial Science Is Only for Math Geniuses
You might’ve heard this one before: “Actuarial science is only for folks who can do calculus in their sleep.” While being #ComfyWithCalculus certainly helps, our coaches offer a different point of view.
“Actuarial science does need a lot of math and analytical thinking,” says Coach Jon, “but there are many actuaries who succeed due to hard work and perseverance. Every field has that rare minority of ‘geniuses,’ and the actuarial one is no different.”
“Actuarial science is more than just math,” says Coach Larry. “It’s logical and critical thinking, as well as problem defining and problem solving. Many actuaries are not math geniuses. They have other important skill sets that bring value to the table.”
“While a solid foundation of mathematics is beneficial for passing the exams,” says Coach Kong Foo, “you don’t need to be the next Einstein. With dedication and proper study strategies, you can successfully navigate the actuarial qualification process.”
In other words, being a math whiz might help, but it’s not the only way to succeed.
“Nearly all of the actual math required to be an actuary, such as algebra and calculus, can be taken in high school, “ says Coach Fred. “At its core, actuarial science is an applied science, like meteorology. In truth, if you’re a math genius, like Newton, Euler, or Ramanujan, your place is at a university, not in the actuarial field.”
Myth 2: Actuarial Science Is Boring
Will actuarial work put you to sleep? No way, say our coaches.
“Actuarial work can be quite dynamic and challenging,” says Coach Kong Foo. “Many professionals, myself included, are drawn to actuarial science because of its unique combination of mathematical and business skills applied to solve real-world problems.”
“Actuarial science is quite broad,” adds Coach Larry. “There are many things you can do, like pricing, reserving, valuation, risk management, and asset-liability management. If we get non-traditional, we enter fields like education, consulting, and business acquisition. You can participate in rotation programs during your internship to observe each and every role. There is something for everyone.”
In short, if you enjoy problem solving, actuarial science can be anything but boring.
“As long as you're drawn to quantitative work,” says Coach Fred, “actuarial science can be very fascinating. You simply need to find the types of problems which interest you in the field. Match that kind of work with the right culture and great coworkers, and you’ve got yourself a dream job!” (cough Coaching Actuaries)
Coach Jon acknowledges that “actuarial science is probably boring to people who don't at least enjoy math. But it’s all relative …To each their own.”
Myth 3: AI Will Replace Actuaries
With the rise of generative AI and large language models (LLMs), will actuaries be replaced by algorithms? Not so fast, say our coaches.
“It's too early to tell how much of an impact AI will have on the industry, but I'm optimistic that it won't reduce the need for actuaries completely or by an overwhelming degree,” says Coach Jon. “Shifts like that would likely be gradual, giving people time to adapt and improve alongside the new technology.”
Coach Kong Foo believes AI is a tool that will enhance actuarial work, not replace it: “Tools evolve over time, and AI is no exception. As AI improves to handle more routine tasks, actuaries are likely to focus more on high-level strategy and complex problem-solving.”
Coach Fred draws a parallel with another profession: “Accounting software didn’t eliminate accountants; instead, it has shifted their roles away from repetitive tasks and has let them focus on more important work. Similarly, actuaries will incorporate AI as a tool to improve productivity and efficiency.”
Coach Larry agrees with his fellow coaches: “LLMs are not yet at a point where their outputs are consistently accurate, high quality, and mimic human interaction and level of verifiability. Humans are needed to validate and check these outputs, just as we validate and verify our own opinions, facts, thoughts, and experiences.”
Myth 4: Actuaries Can Only Work in Insurance
Another common myth is that actuaries are confined to the insurance sector. Not so, according to our coaches. “Most of the opportunities are in the insurance industry, but the consulting/finance side of risk management is substantial as well,” says Coach Jon.
Coach Kong Foo elaborates: “While insurance is a major employer of actuaries, it's not the only field where their skills are valued. Actuaries work in various sectors where financial risk is a factor, including investment firms, consulting agencies, and even tech companies.”
Coach Larry points out the versatility of actuarial skills: “The skill sets that an actuary has are not limited to the insurance industry. There are non-traditional roles for actuaries. Sure, the path to them is not always clear, but they are there. Some actuaries move to different, non-actuarial roles within the same company. There could be other divisions like banking, financial services, and sales that value the knowledge actuaries have. The rise of business analytics and data analytics has also led to companies hiring actuaries for those positions.”
Coach Fred adds, “Actuaries work in investment firms, consulting companies, government agencies, tech companies, and more. Their expertise in risk assessment, financial modeling, and data analysis is applicable across many sectors. As businesses in all industries become more data-driven and risk-aware, the demand for actuarial skills in non-traditional roles will continue to grow.”
Myth 5: You Must Have a Degree in Actuarial Science
This one’s a myth that might surprise many aspiring actuaries.
“Many aspiring actuaries feel it’s important to get a degree in actuarial science at university," says Coach Jon. "While there are advantages to majoring in actuarial science, it isn't a strict requirement for most employers. Work experience and demonstration of skills (technical, communication, etc.) are far more valuable.”
Coach Fred, who has a non-actuarial degree himself, agrees, “Some folks feel that if they majored in a non-quantitative field, they can’t become an actuary. This is a common myth. In reality, actuaries come from diverse academic backgrounds, and entering the field requires strong analytical skills and passing exams, rather than on obtaining a specific degree."
Coach Fred continues, "An actuarial science degree can certainly be beneficial, but dedicated individuals from any discipline can enter the profession, including career changers" (like Fred!).
There you have it! Five myths about actuarial science busted by our expert coaches. Whether you’re considering a career in actuarial science or just curious about the field, we hope this clears up any misconceptions.