Frequently Asked Questions

An actuary analyzes financial risks using mathematics, statistics, and computing to “predict the future” for institutions. They often work in finance, insurance, and government areas. 

The most crucial day-to-day technical skills consist of problem-solving ability, analytical skills, proficiency in statistics and mathematics and computer literacy. As well, being a team player and communicating effectively are crucial for collaboration in the workplace. 

Generally Actuarial work is split into two governing bodies, the SOA and the CAS, the software skills you will use most depend on which path you pursue but there are no strictly defined boundaries and there is tons of overlap! Skills like data analysis, modeling, and task automation are typically done with Excel/VBA and are necessary skills in both fields. Excel along with the working ability of Microsoft Office is most often the first software skill employers require of you as it is used so much. More specifically for Life and Health insurance, working with software like AXIS and Prophet to assist with cash flow projections, financial reporting, and scenario testing is a common occurrence and are in-demand skills. More related to Property and Casualty insurance (P&C insurance), as CAS Actuaries often work with short-term risk models and predictive analytics, programming languages like R and Python used for their statistical modeling and data analysis are important be to familiar with for careers on the P&C side. I could go on forever about the specifics of each software and how they apply to actuary careers but it truly does depend on the company you work with that will determine what you use on a day-to-day basis, most are quite transparent online through job postings about what software they require you to have a strong working ability with, but as I mentioned before Excel/VBA is a perfect starting point as it is used so frequently. If you haven't already please consider using LinkedIn Learning with UTS which is available to McMaster students for free. We here at MAS believe this is a great starting point for software skills development with a load of courses specific to many software you are likely to encounter in your future career! 

Actuarial certifications, such as those from the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS) in North America, are widely recognized globally, though the level of recognition and applicability depends on the country and its local regulations.

• In Canada and the US: SOA and CAS certifications are highly recognized and valued for actuarial roles.
• Globally: These certifications are often recognized in other countries, especially in regions with strong professional networks, such as Europe, Asia, and Australia. However, local actuarial organizations, like the Institute and Faculty of Actuaries (IFoA) in the UK or the Actuaries Institute in Australia, may have specific requirements for practicing in their jurisdictions.
• Mutual Recognition Agreements (MRAs): Some actuarial societies have agreements with international counterparts, allowing easier transfer of credentials.

Ultimately, your certification would be globally acknowledged but may require supplementary exams or compliance with regional standards to practice in specific countries.

"Actuaries only work in insurance."

While insurance is a significant sector for actuaries, their expertise extends to pensions, investments, risk management, healthcare, and emerging fields like climate change analysis and predictive analytics.

"Actuaries don’t interact with people, they just sit at a desk all day."

Actuaries often work collaboratively, presenting their insights to executives, consulting with clients, and participating in cross-functional teams to drive strategic decisions.

"Actuarial exams are impossible to pass."

The exams are challenging but achievable with proper preparation and time management. The rigor ensures actuaries are equipped with the skills and knowledge needed for complex roles.

"Artificial intelligence will replace actuaries."

Rather than being replaced, actuaries are integrating AI and machine learning into their workflows to enhance their predictive modeling and analytical capabilities, making their roles even more dynamic.

Focus on Risk vs. Profit Maximization:

Actuaries concentrate on quantifying and managing risks to ensure financial stability, particularly for insurance companies or pension funds. In contrast, many financial positions, like investment bankers or portfolio managers, prioritize maximizing profits or returns on investments.

Long-Term Forecasting vs. Short-Term Analysis:

Actuaries often model financial outcomes over decades, such as future pension liabilities or insurance claim projections. Financial analysts, by comparison, focus on short-term performance metrics like quarterly earnings or stock price movements.

Technical Depth vs. Broad Business Insight:

Actuarial roles typically require deeper understanding in mathematics, probability, and statistics to model uncertainty. Other financial roles, like accountants or financial planners, may rely more on general business judgement and standard financial tools than complex statistical modeling.

Certification Rigor and Specialization:

Actuarial certifications involve passing a series of highly specialized and technical exams over several years, often focusing on niche areas like life insurance or risk management. Financial positions like CFA or CPA roles, while also rigorous, tend to emphasize broader knowledge applicable across finance and accounting industries.

Unique and in-depth questions can help you secure an internship/co-op as they portray your skills and knowledge or your research on the company. 

Some questions that I like to ask:

• From my research in [Life or P&C] insurance about fields of information analyzed the main ones I found were [Fields - Ex) claim amount, date of incident, age]. Are these also used at [Company] or are there other important fields that you track such as [Field - Ex) location of claim]?
• How does the company support actuarial students in their exam journey and professional development? Do you have study programs, training sessions or shadowing programs between a senior actuary and a co-op student? 
• What are some ways your company differs from the competition and regarding innovation and what projects are currently being explored?

Highlight your passion for AFM and expand on your desire to further your learning in the actuarial field. 

Discuss why you are choosing the AFM program in particular, as opposed to the other specializations, for reasons such as its comprehensive course selection that assists in actuarial exam preparation, or invaluable networking and co-op opportunities. 

Show off your industry knowledge when talking about your future career aspirations. 

Include steps you already have taken to join the actuarial community at McMaster or improve your skills, such as attending MAS events or participating in case competitions. 

List your actuarial exams clearly at the top of your resume so recruiters can quickly see what you’ve passed. If you haven’t taken an exam yet but plan to, include it and write “Sitting [Month] [Year]” to demonstrate your commitment to the actuarial field and timeline. 

Include any relevant projects such as actuarial case competitions or modelling projects from courses. Highlighting these can set you apart from other candidates by showcasing your technical skills, problem-solving abilities, and collaboration in practical settings.

First off these exams are challenging as such it is important to get an early start on your studying, it is recommended to start 3-6 months before the exam, but this does depend on you. From my experience as I am not the best test taker, I studied for 3 months, around 2-3 hours a day, and increased to 3-4 hours in the last month. It is equally as important to find a good study manual for the preliminaries, FM and P, which most students take during their time in university, the gold standard, and my recommendation for these exams is Coaching Actuaries but any others will do. Setting goals is also important, dividing the syllabus into manageable sections while setting weekly goals with a calendar is something you can take advantage of with the Coaching Actuaries Learn Section but can also be done independently. Mastering the fundamentals can not be emphasized enough, learn the notation and concepts like the back of your hand, and practice calculator skills so you can use it just as well as your phone. Practice problems, do as many as possible, and take mock exams, with Coaching Actuaries there are many many problems to study using their unique adapt tools but the SOA also provides many practice problems for free online with solutions for the preliminaries. Focus on weak areas revisit mistakes and create a summary sheet once you finish learning the content with key formulas and definitions. Lastly, join a study group, if you have no friends taking the exams with you like in university it can be hard to keep yourself disciplined, if you are not familiar with Discord I would suggest downloading it and looking for an actuarial community this has helped me in the past with keeping myself on task! Enjoy the journey the exams are meant to be hard don’t get down on yourself when things get hard stay persistent and disciplined and you will succeed! 

Be mindful and intentional with your goals. This starts with gaining a personal understanding of what it is that you want out of your experience and what’s ultimately driving you. 

Types of End Goals:

Build a Strong Professional Network

• Reach out to as many professionals as you can and ask meaningful questions
• No one will reject a coffee chat request! 

Learn More About the Industry 

• Ask yourself questions to challenge your understanding of your work 
• “Why was I given this task?”, “How does this task contribute to the larger picture?” and “What do my results tell me?”

Obtain a Full-Time Offer

• Make that objective clear to your manager
• Seek support to proactively progress towards that goal 

Three important ideas:

1. Have a clear understanding of your end-goals
2. Be curious and ask relevant questions
3. Place learning on the forefront of everything! 

Give yourself a longer study period! The additional time allows you to learn the material at a more manageable pace, fit in activities you enjoy, and gives you some flexibility for any unexpected events such as getting sick. The actuarial exam process is lengthy and in the grand scheme, adding an extra month or two of studying will not make a big difference to your timeline. 

Another tip is to regularly schedule something to look forward to. I always try to balance quality time with friends and family with studying. While I do increase my study hours in the final weeks leading up to the exam day, I still try to fit in smaller activities like grabbing a quick dinner with friends or discovering new cafes to study at.