Majoring in Actuarial Science in Canada

What knowledge and skills do students learn in the Canadian Actuarial Science major?

To become a qualified professional, an actuary must have a solid background in mathematics, statistics and finance. Generally, actuaries have undergraduate degrees in mathematics, actuarial science, statistics or other analytical fields. To become a qualified professional, students must not only complete compulsory courses such as economics, statistics, finance, and mathematics, but also learn other supplementary skills to prepare them for becoming an actuary. Knowledge of computer science, especially programming languages, and the ability to use Excel, databases and statistical analysis tools are valuable. The writing and public speaking courses will improve the students' ability to communicate in the business world.

Compulsory courses include:

• Calculus
• Algebra
• Statistics
• Probability
• Computer Science
• Finance
• Economics
• Business
• Actuarial Science

Employment prospects of Canadian actuarial graduates

The employment of actuaries is expected to grow by 20% in the next ten years, much faster than the average for all occupations. However, since this is an extremely niche profession, it will only bring about 5,000 new jobs in ten years. As of 2019, actuaries have taken up approximately 25,000 jobs. The largest employers of actuaries are as follows:

• Finance and insurance 71%
• Scientific and technical services 15%
• Company and business management 6%
• Government 4%
• Self-employment 1%

As mentioned above, to become an actuary, a professional certificate is a prerequisite. Students can choose to become a member of the Casualty Actuarial Society (CAS) or the Society of Actuaries (SOA) to enter their field of specialization. CAS certifies actuaries in the field of property and casualty insurance, including auto, homes, medical accidents and workers’ compensation insurance. SOA certified actuaries engage in life insurance, health insurance, pensions, investment and finance. Usually before graduation, students will have already obtained a professional certificate. After graduation, the scope of work is mainly to develop, price and evaluate various insurance products, and calculate financial risks. Actuaries usually work in teams, which usually include managers and professionals in other fields, such as accounting, underwriting, and finance.

Job description of a Canadian Actuarial Science graduate

Most actuaries work for insurance companies. While most people work full-time in offices, some actuaries who work as consultants may travel to meet with clients. Most actuarial work is done on the computer, and actuaries use database software to compile information. They use advanced statistical and modeling software to predict the likelihood of an event occurring, the potential cost of the event, and whether the insurance company will have enough money to pay for future claims. Actuaries in the insurance industry usually specialize in specific areas of insurance, such as:

• Health Insurance Actuary

Helps formulate long-term care and health insurance policies by predicting the expected cost of care provided under the terms of the insurance contract. Their predictions are based on many factors, including family history, geographic location and occupation.

• Life Insurance Actuary

Estimate a person’s life expectancy through risk factors such as age, gender, and tobacco use, thereby formulating annuity and life insurance policies for individuals and groups.

• Property and Casualty Insurance Actuary

Formulate insurance policies to ensure that policyholders are protected from property losses and liabilities caused by accidents, natural disasters, fires and other events. They calculate the estimated number of claims caused by car accidents, which varies with the insured’s age, gender, driving history, car type and other factors.

• Pension and Social Welfare Actuary

Design, test and evaluate a company’s pension plan to determine whether future available funds are sufficient to ensure payment of future benefits. They must report the evaluation results to the federal government. Pension actuaries also help companies develop other types of retirement plans, such as 401(k) and medical plans for retirees. In addition, they also advise individuals on retirement plans.

• Corporate Risk Management Actuary

Identify any risks that may affect the company's short-term or long-term goals, including economic, financial and geopolitical risks. They assist senior management to determine how much risk the company is willing to take and develop strategies to deal with these problems.

Job description of a Canadian Actuarial Science graduate

• The average annual salary of an actuary is $102,880 $102,880
• The bottom 10% earn less than $61,140
• The top 10% earn more than $186,110

Many actuaries earn far more than that.