Become an Actuary in Canada in 5 Steps

The road to becoming an actuary in Canada has a number of steps and requires a lot of hard work and studying to make it, but once you do, you are pretty well assured of having employability in this growing field.

Actuaries find themselves working as analytical problem solvers, developing creative business solutions and communicating their ideas to a wide variety of audiences.

Generally, they use advanced statistics and modeling software to forecast the probability of an event occurring, the potential costs of the event if it occurs and whether the organization has enough money to pay future claims.

Working in Canada as an actuary is one of the most rewarding jobs, especially for those who love to help others by solving complex monetary problems.

If you want to work in this field, you must be comfortable working in front of a computer for long hours. You must also be willing to continuously update your knowledge in the field, as it is constantly evolving.

This article covers the necessary steps you need to take to become an actuary in Canada.

Who is an Actuary?

An actuary is a business expert who uses mathematical and statistical knowledge to solve complex monetary problems.

Actuaries generally have a good understanding of the financial system, highly analytical and have great problem-solving skills.

Furthermore, these professionals help their organizations or clients to solve complex financial issues especially those that deal with uncertainty.

Actuaries usually have academic qualifications in different fields such as mathematics, statistics, insurance, economics, actuarial science, physics, accounting and finance. Nonetheless, they all have one thing in common – an interest in mathematics and statistics.

Responsibilities of an actuary

Apparently, majority of actuaries work for companies dealing with life, health and properties while others work for pension companies, consulting firms or government agencies.

The general duties and responsibilities of an actuary include the following:-

• Compile statistical data and other information for further analysis.
• Design, test and administer policies to minimize risk and maximize the profitability of insurance policies and produce exhibits such as tables, charts and reports to explain proposals and calculations.
• Design, test, and administer insurance policies, investments, pension plans, and other business strategies to minimize risk and maximize profitability.
• Explain their findings and proposals to company executives, government officials, shareholders and clients.
• Estimate the probability and likely cost of events such as an accident, death, natural disaster or sickness.

Top skills needed to become an actuary in Canada

To be effective as an actuary, you need to possess a certain set of skills and personality traits, as these skills will allow you to perform your job duties with competence.

The following are top skills needed to become an actuary in Canada.

1.  Analytical problem solving skills

All actuaries need to be analytical problem solvers as their tasks include examining complex data and identifying patterns and trends to determine which factors are responsible for specific outcomes.

They need to be able to identify risks and develop ways for businesses and clients to manage those risks.

2.  Communication and solid writing skills

Actuaries must be able to explain complex technical matters to those without an actuarial background.

Strong oral communication skills enable actuaries to explain complex technical and statistical details to a diverse audience, while solid writing skills ensure that findings and solutions are easily understood in memos and reports.

3.  Computer skills

Not only basic computer skills and a knowledge of Microsoft office are essential. Actuaries frequently use models and tables to evaluate large amounts of data.

An actuary must know programming languages and must be able to use and develop spreadsheets, databases and statistical analysis tools.

4.  Interpersonal skills

Actuaries lead teams on a variety of projects and thus must be able to handle an assortment of personalities.

In addition, they must learn to listen to other people’s opinions and suggestions before reaching a conclusion.

5.  Mathematical skills

Actuaries deal with numbers, so being able to do basic arithmetic quickly and correctly is a definite requirement.

However, the calculations associated with actuarial science can be complicated. Knowledge of calculus, statistics, and probability are also essential since actuaries quantify risk and determine the probable likelihood of certain events.

5 Steps to become an actuary in Canada

If you want to become an actuary in Canada, you should follow the steps below:

1. Obtain your bachelor’s degree
2. Get an Actuarial Internship
3. Obtain your licenses and certifications
4. Become an associate
5. Join a fellowship

#1. Earn a Degree

Most employers require candidates to obtain their bachelor’s degree in actuarial science, mathematics, economics or other mathematical related fields.

During your studies, ensure that you also take classes in finance, statistics, computer science, coding, and economics.

Actuaries work with computer software and programs, so these courses prove useful in actuarial careers. These professionals work with statistics, analyses, databases, and spreadsheets.

Indeed, learning skills and attending courses that teach you how to perform these duties aids you with future responsibilities.

#2. Get an Actuarial Internship

If possible, complete an internship before graduating from a post-secondary institution. Some postsecondary programs include cooperative education as part of your studies.

Positions in or related to underwriting, data analysis, risk management or investments would all be high quality internship opportunities for an aspiring actuary.

More so, some schools may also require you to find your own internship, so consider which companies you want to work for in the future and determine which ones share your values.

To do an internship, you may also be required to pass at least one of your actuarial exams.

Not only does an actuarial internship help you get experience for your resume but it will also help you determine whether you really like actuarial work.

Hence, completing an actuary internship increases your chances of being hired after obtaining your license.

#3. Obtain your licenses and certifications

Following your degree, you need to obtain licenses specific to the profession. The Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) administer exams.

You also need to register with the Canadian Institute of Actuaries (CIA). To obtain your license, you must pass a series of exams.

These exams are typically a financial examination test. The Society of Actuaries offers these multiple-choice exams.

Each exam takes approximately three hours to complete and up to six months to prepare. You need to pass ten (10) exams to get your full designation.

#4. Become an associate

To earn this designation, you need to write and pass seven (7) exams through either the Associate of the Society of Actuaries (ASA) or the Associate of the Casualty Actuarial Society.

The society you choose depends on whether you want to work as a property and casualty insurance actuary or a life/health insurance actuary.

To become a casualty insurance actuary, you need to get your credentials with the Associate of the Casualty Actuarial Society. If you want to work as a life/health insurance actuary, you can earn your credentials with the Associate of the Society of Actuaries.

Most importantly, there are other requirements in addition to the actuarial exams that you have to meet before you become an associate.

#5. Join a fellowship

After completing your actuarial exams, you can apply to join a fellowship. When you earn your membership with a fellowship, you become a full-time and licensed actuary.

When you’re employed in the actuarial field, your employer will probably pay for your study materials and exams, and they’ll give you paid study time.

Between becoming an associate and fellow, you need to complete three more exams.  It usually takes two to four years to complete these extensive exams.

After that, you’ll have to start paying annual fees to these societies (SOA, CAS and/or CIA in Canada) to remain a member.

Canadian Universities Offering Actuarial Science Degree

If you’re looking for a bachelor’s degree in actuarial science in Canada, check out the list below to find the best school to study actuarial science in Canada.

1. University of Calgary

The University of Calgary trains students to become innovative and adaptable learners ready to meet the needs of current and future Canadians.

The required courses cover most of the material for the associateship examinations of the Society of Actuaries and Casualty Actuarial Society.

A co-operative education degree program in actuarial science is also available, allowing students to supplement their experience with 16 to 20 months of work terms in the actuarial industry.

2. McMaster University

The Department of Mathematics and Statistics at McMaster University offers a four-year honours BSc in Actuarial and Financial Mathematics.

The program is also available with a co-op option beginning in the third year. The co-op option features 2-8 month work terms, which adds an additional year to a student’s required time for completion.

3. University of Regina

The Department of Mathematics and Statistics is the largest department in the University of Regina, offering degrees in mathematics and statistics both at the undergraduate and graduate levels.

Successful students graduate with a Bachelor of Science degree in actuarial science.

The actuarial science program provides a strong statistical and mathematical background in preparation for the required associateship courses of the Society of Actuaries.

4. Simon Fraser University

Simon Fraser University is another major Canadian university offering degrees in actuarial science.

These programs include actuarial, mathematics, statistics and economics courses. They also prepare students to attempt the first four courses of the Society of Actuaries and part of the fifth and sixth courses.

There is also a certificate program in actuarial mathematics that is designed to assist graduates from non-actuarial fields.

5. University of Waterloo

The Department of Statistics and Actuarial Science at the University of Waterloo is home to one of the largest and most highly renowned actuarial science groups in North America.

The program for the Bachelor of Mathematics with honours in actuarial science covers a wide range of courses, including full coverage of the material of the SOA/CAS courses 1-4, partial coverage of SOA courses 5, 6, and 8, and Casualty Actuarial Society (CAS) course 5.

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Frequently Asked Questions (FAQ)

How much does a fully qualified actuary earn in Canada?

Actuaries are well compensated in Canada. Experienced professionals have the potential to earn from $160,000 to $200,000 annually.

Are actuaries in demand in Canada?

Canadian actuaries are in demand in Canada and the reason why they are in high demand is that Canadian universities provide extraordinarily good programs that prepare graduates to gain their professional qualification.

How many years does it take to become an actuary in Canada?

For most people, it takes between 7 and 10 years to become a fully qualified actuary.

Aspiring actuaries in Canada typically spend between 3 and 5 years getting a bachelor’s degree and about 7-8 years passing all ten actuarial exams.

What kind of mathematics do actuaries use?

The mathematics that actuaries use isn’t as complex as it may sound. Actuaries primarily use probability, statistics and financial mathematics to solve complex monetary problems.

Conclusion

While the actuarial profession may be one of the least-understood careers by the public, actuaries have a profound impact on all of our daily lives.

As our world becomes more complex with the advent of new technologies, actuaries tries to minimize risk and maximize profitability.

For those who put in all the time and hard work, a career as an actuary can provide a high standard of living, a good work-life balance and the satisfaction of serving an important function in our society.