Twenty years ago, you could ask a large group of actuaries, "Howmany of you first learned of the actuarial profession while in highschool?" and only a small handful would raise theirhands. 

Now, it's amazingly common — even the rule— for university actuarial science majors to enter collegeas incoming freshmen having firmly decided at the age of 16 or 17that they want to pursue an actuarial career.

How has this change come about? 

As we wrap up Insurance Careers Month this February, I feltcompelled to talk about some of the major reasons why actuarialscience — the study of risk contingencies and theirpotential impact on individuals and societies — has becomesuch an attractive career to so many.

1. It's multidisciplinary

Actuarial science may well be the most multidisciplinary ofprofessions because almost any field of inquiry you can think ofhas implications for an actuary's work. Modeling and evaluatingpotential catastrophic events requires knowledge of severalsciences. Understanding psychology and sociology are necessary tomodel human behavior in a risky environment. Finance and economicsare the contextual basis for estimating the potential financial impact of risk. And try modelingterrorism risk without an understanding of socioeconomic andpolitical issues on a global scale. For an actuary, there's alwayssomething new and relevant to learn.

2. It's challenging

In part because of its multidisciplinary nature, and because ofthe level of technical skill and insight involved, the actuarialprofession is a challenging one. Furthermore, it is rare for anactuary to know or intuit the precise outcome of an actuarialproject or analysis beforehand. The profession thus appeals tothose who like to solve problems. Whether crosswords, Sudokus, ormathematical brain-twisters, most actuaries love to solvepuzzles!  Quantifying new or unusual emerging risks is animportant and challenging real-world puzzle.

3. It's essential

The ability to price risk contingencies is an essential part ofour economy and society. Without an active insurance market and astrong quantitative foundation for measuring the potential impactof risks, developments in the world that we take for granted don'toccur: The bridge and skyscraper aren't built, people don't live incertain areas, and new products aren't invented and disseminated.Most people, and Millennials in particular, like to know thatthey're doing something important and useful in their jobs, andactuarial science is an essential function underlying our world andlifestyle.

Related: Actuaries do far more than play by thenumbers

4. It's blended

Actuarial science is a perfect blend of the theoretical andpractical, of mathematics and business. Many actuaries, generallyhaving excelled in math classes, at some point in their educationconsider graduate study in mathematics, but often don't have thedesire or inclination to submerse themselves in abstractions. Theyhave a need for the pragmatic, and they find business issues andproblems to be attractive targets for mathematical application.Mathematical theory and reasoning are employed — but to aspecific solid and practical end.

5. It's rewarding

No one can deny that the perennial placing of the actuarialprofession at or near the top of most job and career rankings is amajor factor in students choosing to pursue the discipline! Risingsalaries, historically favorable supply-demand situations andsteady employment certainly appeal and attract. But these areperhaps reasons that someone is initially inspired toconsider a career in actuarial science; the reasons listed here arewhat solidify and maintain that interest throughout a lifetime. Andperhaps the biggest continuing reward of all is the opportunity andprivilege to participate in a community of intelligent anddedicated individuals.

Why would someone want to be an actuary? Why would theynot?

Rick Gorvett, FCAS, PhD, is staff actuary of the Casualty ActuarialSociety. He can be reached at [email protected].