Actuary

by Staff Reporter
by Staff Reporter
If you have an analytical mind with skills in mathematics and statistics, then a career as an actuary could be for you! An actuary is an incredibly rewarding career that will allow you to make high-level business decisions that can change a company for the better.

Read on to learn more about the role of an actuary in South Africa.

Career Overview

An actuary uses statistical data and mathematical models to analyse the financial risks of a particular business or client.

Basically, you’ll most likely work in financial and investment corporations to continually adjust their methodology of calculating risk, profits and quality of goods and services.

Because of the above, a strong mathematics ability is a must for those who would like to become an actuary in South Africa.

Required School Subjects

You will need to have taken the following subjects at high school:

  • Mathematics (with a final mark of 80%)
  • English or Afrikaans Home Language or First Additional Language (with a final mark of 60-69%)

Recommended subjects:

  • Alpha Maths
  • Additional language (with a final mark of 60-69%)

Institution and APS

The following institutions are highly recommended for Actuarial studies:

Required Qualification/s

Students who would like to become actuaries have two options: You can either get certification directly from the Actuarial Society of South Africa or you can obtain a degree in actuarial science or a relevant field.

If you opt to receive your actuarial science qualification from the Actuarial Science Society of South Africa, you will need to pass all of their exams.

The best part about studying through the Actuarial Science Society of South Africa is that they provide you with the learning material and other resources needed to study for these exams.

Additionally, if you study toward an actuarial science degree at a college or university, you’ll obtain exemptions from the Actuarial Science Society of South Africa’s exams via your degree. The more you study (i.e. honours and masters) the more exemptions you’ll get.

If you opt for the actuarial science degree route, you’ll need to obtain one of the below degrees:

  • Bachelor of Commerce (Actuarial Science)
  • Bachelor of Business Science (Actuarial Science)

Required Skills

As stated by ASSA (Actuary Society of South Africa), you will need the following skills to become an actuary:

  • financial and mathematical ability
  • risk evaluation and interest
  • analysis of deeper concepts
  • scientific techniques
  • asset management
  • communication
  • analytical and critical problem-solving

Where you can work

You have a few different options when choosing where to start your career as an actuary, with a multitude of industries to choose from: insurance, pensions, investments, banking, healthcare and risk management.

As an actuary, you’ll also have the choice of doing more technical work or you can work in a more consulting, managerial role. You’ll explore the various fields during your studies to allow you to get an idea of the various industries and what you enjoy.

Once you’ve chosen which industry you’d like to get into as an actuary, you’ll most likely enter a graduate programme. You’ll be encourage to write the actuarial science exams, however, it is your choice at which pace you’d like to complete the exams, if at all. From here on out you’ll get promoted based on your performance and your amount of exemptions.

Working Hours

Actuaries will typically work for financial and insurance firms who generally follow the standard working hours of 8am to 5pm. However, Actuaries are known to work hard and will often be required to work overtime to reach their deadlines.

Expected Salary

Actuaries are known to be some of the top earners in the world. In South Africa, you can expect to earn an estimated average of up to R750 000 per year.

With that said, there are ways to increase your salary as an actuary with exams. With each actuary exam that you pass, the higher your salary. For example, someone who has graduated with a degree in actuarial science will earn a set salary. With each exam that they pass thereafter (while working), their company will increase their salary.

Here are the membership categories based on exams passed:

  • Technical (TASSA)
  • Fellowship (FASSA)
  • Associateship (AMASSA)
  • Chartered Enterprise Risk Actuary (CERA)

You can read more about the various memberships.

The below salaries are just guidelines and it can differ largely based on how many exams have been passed.

What to expect

The actuarial science degree is known to be one of the hardest degrees to pass. Understandably since actuaries do challenging, extremely important work that earns them well-deserved salaries. You can expect to do a lot more studying and a lot less partying than your fellow students studying other degrees.

Some of the modules you’ll cover in your degree:

  • Economics
  • Actuarial Science
  • Mathematics
  • Probability and Statistics
  • Financial Accounting
  • Financial Risk Management
  • Business Management
  • Information Systems

Included in these studies are some of your actuary board exams. These are the exams that help you gain exemptions. If you opt to do postgraduate studies, you can gain more exemptions through your studies. However, if you go straight to work, you can write an exam every 6 months. You will buy your study material through the Actuarial Science Society of South Africa. Most companies that hire actuaries will pay for your study material and for you to write the exams since it’s to their own advantage and benefit. They’ll also give you study leave.

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