What's the Best Alternative to Actuarial Science for Becoming an Actuary? A Closer Look at Mathematics, Statistics, Finance, and Economics

To become an actuary, the most common path is to pursue a degree in actuarial science. However, if you're considering alternatives, there are several relevant fields of study that can prepare you for a career in actuarial science. These include mathematics, statistics, finance, and economics. Let's explore each of these options and discuss which might be the best fit for your career goals.

Mathematics vs. Statistics for Actuarial Science

Mathematics is a fundamental component of actuarial science. A solid foundation in mathematics, particularly in areas such as probability and statistics, is crucial for actuarial work. A degree in mathematics provides you with the analytical skills needed to perform complex calculations and analyze data effectively. Key topics in mathematics that are particularly relevant to actuaries include:

Calculus Linear Algebra Probability Statistics Financial Mathematics

Statistics is another path for aspiring actuaries. A degree in statistics focuses on data analysis and interpretation, skills that are essential for actuaries. Key topics in statistics include:

Data Analysis Statistical Inference Regression Analysis Sampling Methods Time Series Analysis

Finance for Actuarial Science

A finance degree can also be beneficial. Finance covers important concepts related to risk management, investments, and financial markets. Coursework in finance may include:

Financial Accounting Corporate Finance Investment Analysis Risk Management Derivatives

These skills are crucial for actuaries, as they often need to assess risks and make informed decisions about investments.

Economics and Applied Economics for Actuarial Science

Economics is a broader field that studies how societies allocate resources and make decisions. It encompasses various theories and principles, which can be applied to different sectors. Key areas in economics include:

Macroeconomics Microeconomics Market Structures Economic Policy International Economics

Applied Economics, on the other hand, focuses on using economic theory and quantitative methods to analyze real-world problems and inform decision-making in specific contexts such as public policy, business, or finance. Key areas in applied economics include:

Public Policy Analysis Business Strategy Financial Econometrics Causal Inference Resource Allocation

Which Course is More Suitable?

The right course for you depends on your interests and strengths. If you are primarily interested in the mathematical and statistical aspects of actuarial work, mathematics or statistics would be the most suitable. These fields will give you the analytical and statistical skills you need to excel as an actuary.

If you want to understand the economic environment in which actuaries operate, economics or applied economics can be beneficial. These fields will provide you with a deeper understanding of economic theories and methods, as well as practical insights into how these theories can be applied to real-world problems. Applied economics may offer more practical skills relevant to actuarial tasks, as it focuses more on using economic theory in practical contexts.

Ultimately, consider your interests and strengths. If you enjoy math and statistics, lean toward those fields. If you are more interested in economic theory and its applications, then economics or applied economics could be the way to go. Regardless of your major, you should also focus on passing actuarial exams. These exams are essential for becoming a certified actuary and they will help you build the quantitative skills necessary for a successful career in actuarial science.