Forget what you might think of people who work as actuaries – overworked number crunchers who toil away in windowless offices, dully calculating risks and premiums for insurance companies.
Yes, the field of actuarial science does involve numbers, data, formulas and computer-generated algorithms, but industry leaders say it has rapidly evolved over the last three decades, spreading across new business frontiers as data collection and analysis become a massive part of the economy.
That development has created a demand for trained actuaries and a wealth of personally and financially rewarding job opportunities.
“There is absolutely a need,” said Brian Mackintosh, chief actuary at Blue Cross & Blue Shield of Rhode Island. “It’s a demanding and rewarding field.”
In response, Bryant University is launching a master’s degree program in actuarial science, the first of its kind that’s online and asynchronous, allowing enrollees from anywhere in the world to learn on their own schedule.
Bryant has started taking applications for the program, which is scheduled to start in the fall. Courses will be offered in 10-week formats and the degrees can be completed in as little as one year, although students can enroll part time.
Those in the industry say the new program comes at a good time. As the availability of data and its use in the business world grows, actuarial skills are needed in sectors such as health care, technology and financial services. The U.S. Bureau of Labor Statistics has projected a 21% growth in actuary occupations by 2030, along with significant growth in related fields in money management.
Mackintosh says an actuary career is an attractive choice for people with an inclination toward data science but who wish to work in the private sector rather than at a university or research lab. “It is an intersection between data science and business all rolled into one,” Mackintosh said. “It’s for people who like solving problems.”
It’s clear the profession continues to evolve. Mackintosh has hired employees who studied life sciences in college before they changed career tracks. Recent job postings for actuaries at companies such as electric vehicle maker Tesla Inc. show that modern companies are working in “the new frontiers of risk that go well beyond the traditional boundaries,” he said.
And as technology advances, complex questions such as where to invest capital and how to formulate long-term business strategies will require answers.
“It’s really an art and a science,” Mackintosh said. “You are really trying to address the needs of both owners and consumers.”
Bryant already has an established bachelor’s program in actuarial science. Students in the master’s program will work with faculty experienced in the private sector. This includes Rick Gorvett, chair of Bryant’s mathematics department. He is also an award-winning risk analytics expert and fellow with the Casualty Actuarial Society, a leading accreditation organization.
The outlook for future actuaries is favorable, says Gorvett, who has witnessed the evolution of the actuarial industry from one concentrated mostly in the insurance sector to an ecosystem that touches on every major commercial enterprise.
“It’s about using math to identify opportunities in the business world,” he said.
And as the interconnectivity of the modern world continues, the increase of profit-making opportunities increases, too. And so do the risks that companies must navigate.
“You are not necessarily changing the risk. You are changing the financial and economic impact on the risk and the ultimate effect of that risk,” Gorvett said. “You are not lowering the chance of a hurricane. It’s more about qualitatively and quantitatively assessing the risk so that you can react most effectively.”
While prospective master’s students may have undergraduate degrees in actuarial science, the program is open to others considering a second area of study or a career change.
The curriculum will cover math, statistics, probability theory, economics, data science and communication. The university anticipates accepting about a dozen students for the first term.
The industry has embraced a more interdisciplinary approach. One emerging element of actuarial work is integration with “soft sciences,” such as behavioral science, says Gorvett, who noted that mathematical models must also consider predictions for human behavior.
“That is an important and up-and-coming area,” he said.
Prospective actuaries will end up taking up to 10 exams before final accreditation – a process “not for the faint of heart,” Mackintosh said. Still, graduates from the bachelor’s program in actuarial science who become associates in the region often have starting salaries of between $70,000 and $100,000, according to Gao Niu, assistant professor of mathematics at Bryant.
Graduates of the master’s program may have even greater prospects.
Niu says actuaries provide vital functions, which can range from risk management, pricing and the deployment of long-term fiscal reserves. They often act as a data-based check on the more bullish instincts of other departments, which can lead to greater job security as they become an indispensable part of their organization.
“It’s a great career. You can really provide a lot for your company,” he said.
Niu says the premium on actuaries within a company is logical given their job descriptions. For example, after final accreditation, they alone have the power to create and sign off on the annual reports that will determine tax liability that in turn will influence market strategy.
“That’s why this job is so important,” Niu said. “You basically help decide much of a company’s outlook.”
