I think you may have given people some misconception about actuarial science

1. I want to do Actuarial Science because I like Math.
This is the biggest misconception that people have about Actuarial Science. In actual fact, a good knowledge of Mathematics is necessary, but a great knowledge is not. In the UK, the first 8 professional papers are somewhat Maths-based, but the tougher papers at the end are all written papers, which require a good command of English, a good knowledge of the insurance industry and good critical thinking skills. Throughout my course, the most difficult branch of Maths we did was Calculus and Linear Algebra, and that is not saying much. When you do start working, you will realise that the only Math you need are mostly addition and subtraction. Computer Programming will be the most important skill you will ever need. And to all of those who says that they need Further Math in their A-Levels, I did Math, Economics and Law. If you like Math, do a Mathematics degree.

Yes! You may be true that when we start working, the only maths that is needed is addition and subtraction. However, why do you think that most people have to study so much mathematics just to take an actuarial science major? We have to know as well, passing those professional papers are not easy at all and it needs mathematics! Actuarial science major is more than mathematics as it involves economics, finance, computing, communication and others. That's how students are prepared for those harder examinations.

2. I want to do Actuarial Science because the pay is good.
True, we have one of the highest starting salaries in the business world. Not by much though. The thing is, a qualified actuary does earn a lot. But to get that qualification, one has to pass professional papers, and those are not easy by a mile. The average time it takes to pass all your papers in Malaysia is around 6 years, depending on how good you are. (Some do take more than 10 years) And truth be told, all other professions will be able to earn a satisfactory remuneration within 10 years. If you want the money, go into Investment Banking. In a magazine which I have read, in business, while all other financial workers are paying off their mortgage for their first house, Investment Bankers are buying their second home.

True that it's a good pay. However, the situation may not be as bad as u may have said. To earn a lot, we need qualification, which is by passing papers. However, if one were to be serious in actuarial science, he/she would have plan to take some papers when doing their degree. Serious students would on average pass about 4 papers(SOA/CAS) by the time they graduated with their actuarial degree. Hence, it may not take that many years to pass all the papers. Moreover, to be exact, it's not that you can only earn a lot by passing all the papers. In fact, for each paper that you passed, your salary will increase. Lets say you passed 4 papers(SOA/CAS) after 3 years you graduated. The pay is already vert high as compared to other degree holders are still working their way up in their career

3. I can pass all my professional exams if I work hard enough.
I want to believe this. I really do want to believe this. But with only 50 qualified actuaries in Malaysia, doesn’t it make you doubt that the only reason people are failing is because of a lack of effort? Studying is easy enough. Working is easy enough. Studying while working is not. While I was working in Malaysia, a colleague of mine works from 9 to 7 everyday, if he is lucky. On his way to and back from work, he studies on the LRT. If there is overtime, he will need to stay back and continue working. On weekends, he studies. At night, after being thoroughly exhausted at work, he studies. And while doing all these, he needs to find time for his girlfriend, family and friends. Now, ask yourself this: can you picture yourself doing that for a year? 3 years? 10 years?

I have to say i have to disagree with you. YES one can pass all professional papers if they work hard enough. For the actuarial field, if you are working for an actuarial company, you would usually be given study break if you were to take a professional exam. They would give you holidays so that you can study and prepare well for the papers. Therefore, the situation is not as bad as you said it is. You said that why is there only about 50 qualified actuary in Malaysia? This may not be because passing the papers are very hard. This may be because the actuarial field are not familiar to the society yet. The so-called qualified actuaries are those who passed all the papers. However, those who have passed a few papers are also actuary, just that they are not fully accredited.

I just want to clear out some misconception that TS may bring to you. In short, actuarial science is really a very rewarding career. If you like maths, do mathematics, like money, do investment banking. If you like both maths and money, do actuarial science. Moreover, an actuarial career is one of the best career because despite of its high demand, the workload is not as much. It is also ranked the best job in 2010.

Still, these is something that i have to agree with TS. Many people are taking actuarial science without first exploring what Actuarial science is all about. I have a friend who took physics in Matriculation took actuarial science for university just because many people are taking it. Many people even take actuarial science without knowing what actuarial science it, and that they have no idea about those professional papers. For them, it is just another degree that give you a lot of money once you graduated. This is the major misconception about actuarial science.

Sorry to say, but getting an A+ for SPM Add maths are just bullshits. the standard of SPM add maths are just too low...If you want to lever your maths skills, try some overseas mathematics exams (Australian Mathematics Competition, Olympia Competition), then only you judge your maths skills.

As mentioned before, there are a lot of dropouts for AS and AS grads will not necessary become actuaries(you need to pass professional paper to become one, just like how medical grads becoming a doctor and engineering grads becoming an engineer)



It doesn't really matters where you study. As long as you can pass those professional papers, you are just well to go just like those graduated overseas. The only problem is just that you cant take some of the exams locally, or perhaps most of them.

You kept saying demands is scarce and supply is abundant. Proofs? Perhaps you are speaking from your experience. However, statistically, your experience alone cannot represent the whole situation (i assume that you have taken statistic course?).

There is something that i kept saying "Getting an actuarial science degree doesn't mean you are an actuary".
You need to pass professional papers to be a credential actuary. Yes, there are 200+ actuarial science grads, but how many of them passed the papers? Demand for actuarial science grads may be low, but demand for actuary is definitely not! Why would a company want to pay higher salary for actuary who pass more papers? Simple supply and demand model, you judge from there. (check the average pay for actuary, not AS grads).

I am just an actuarial science student...haha...and I have done enough researches before i choose this major. Somehow, i find many information here are misleading.

Lol...you know me? I supposed you studied in INTI before, heading to University of Wisconsin-Madison this fall

Well, accounting isn't really part of actuarial science, even though we learn accounting in our classes. About projecting future financial statements, even of an insurance company, it's the accountant's job, not the actuary, actuary working for insurance company dont really involve in the accounting. As i say, in an insurance company. Why would an insurance company hire an actuary to do accounts anyway. Actuary expertise in risk analysis, which in an insurance company, is used to earn money, not to keep record of the money.

And about accounting, it's more than just book keeping. It involves also budgeting, financial analysis, giving advice on the company's financial status and many more.

True that insurance company use a lot of assumptions, but it's mathematical based assumptions. Actuary judge based on their mathematical or rish analysis. Meanwhile, accountants judge based on their financial analysis.

Actuary and Accountants are actually two different thing overall. Actuaries are the ones who help the company to earn money, by managing risk or in an insurance company, decide on insurance policies, so that they company will earn money. Meanwhile, accountants are the ones who keep track of the company's earning and expenses, and advice the company on their financial status, hence advising them about their budgets.


Sometimes, it doesnt matter whether someone graduated already or not. How well a person knows about a topic depends how deeps the person did research on that topic, not really on how how long the person are directly involved in the field. One simple example, a person who teaches physics in university for 10 years and a person who did research on physics on perhaps 5 years? Who do you think know better physics? A more appropriate example, a person who have 10 years experience in raising animals as compared to a person who spent only 5 years in researching on how to raise animals. Who knows better about raising animals?

True that a person who involves in that field have more experience, but doesnt means he knows more about the field as compared to someone who did research on that field.

If you really did read my replies, I have never denied that actuary doesn't need accounting skills. My comments mainly target on ur statement that
"In fact, the accountants in insurance company may even need to consult actuaries on certain part of the accounts, since insurance company use a lot of assumptions.", if you did realized what you typed. What i replied is to mainly show the difference between actuary and accounting and how actuarial science and accounting differs. Even though actuarial science student learns accounting, the accounting we learnt is so minute as compared to accountants that it can be hardly used. Just because insurance company uses a lot of assumptions, doesn't mean accountants need to consult actuary on parts of the accounts. True that actuary projects all possible outcomes, but financial statement? Again, ask this simple question. The difference between actuary and accountants are already explained by mumeichan. Again, I am talking about accountants and actuary in an insurance company, in reply of ur comments.

Again, if you really did read my replies. It doesnt matter whether one graduated already or not. One who graduated doesnt means he has already entered the field and doesnt means he/she better knows the field. Since you also hear from the third party saying just like us, there is actually no point in asking whether the person has graduated already or not or has the person passed any exam. Because just like you, we got our information as third party. And, we got our information from actuarial organization and actuaries, yes actuaries.

And about red herring, again, if you really did read my replies, I mentioned "Who knows more about raising animals?". I merely talk about how well a person knows a topic about a field, not how well a person can do in the field. As i mentioned. "True that a person who involves in that field have more experience, but doesnt means he knows more about the field as compared to someone who did research on that field."

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Added on August 10, 2010, 11:36 amWhat you are saying here is a very minute field of actuary. Actuarial field is so versatile that it's popular in not just insurance. It's undeniable that actuaries deals with models. However, in most of the actuarial field, actuary acts as an consultant or adviser. They seldom get hand-ons on the company's solvency ratio and etc.



This post has been edited by jpysh2004: Aug 10 2010, 11:36 AM

Yeah, somehow i have to agree. I have to say the only reason I reply to this thread is that there are too many misleading information about actuarial science. There are just too many people complaining how hard to become an actuary from what they heard. They stopped when they thinks it's difficult to achieve. In the end, they achieve nothing.




Actuary didnt get paid for doing nothing and actuary do not just happened to "pass"the exam. There are reasons behind the high salary and good job specs and it didnt come by just complaining and do nothing. Yet, Actuary didnt just become the best job in 2010 for nothing.

If you are determined for a career, you will work hard for it. There is no easy way out in making a successful career. Complaining how hard a career can be are just excuses of lazy people who do not want to work hard. When i was in high school, I used to think that I can get a high paying job that doesnt need to work hard. Guess what, no such thing. Before I decided to take up an actuarial degree, I heard things about actuarial science and how hard it is. Guess what, i am finishing second year now and i passed my first professional paper with only one trial and studied for only one month.

This post has been edited by jpysh2004: Aug 10 2010, 01:56 PM