The Truth About Actuarial Science

Assalamualaikum, Its been a long since the last time I created this blog. The reason I'm writing this blog now is because I want to clear things out and maybe encourage people to understand what is Actuarial Science, what actuarial science do, what actuarial science requirement and etc. I really hope this post will make my followers and maybe other viewer will have a clear picture of "The Truth About Actuarial Science" as stated in this post title.

I believe that most people who are doing Actuarial Science for the wrong reasons. I hope that this post of mine will actually shatter the disillusionment that people have nowadays. please don't get me wrong, I am not trying to discourage people to pursue this challenging course, its challenge being its ultimate reward. However, it is disheartening to see so many people get into this course and ending up not being qualified actuaries, because they fail to understand what this course is all about.

Bismillah hirahmanirrahim,

First and foremost, my qualifications: I have wanted to do Actuarial Science since I was in Form 4. In college, I did my research and I have looked at the qualifications provided in the UK, US, Australia and Malaysia. I have now finished my Diploma In Actuarial Science in UiTM Tapah Perak. Right now I'm in the final semester for BSc (Hons.) Actuarial Science. I didn't say I have a lot of experience in related field but what I'll discuss further is based on my own observation throughout all this these years taking Actuarial Science courses. To get the ball rolling, here are some misconceptions that need to be cleared up:

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.

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.

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. I want to share one story that I've read somewhere. This two friend work at the same place so the story goes like this oppsss before that let me label as "A" and "B". While B was working in Malaysia, a colleague of A works from 9 to 7 everyday, if he is lucky. On B way to and back from work, B studies on the LRT. If there is overtime, B will need to stay back and continue working. On weekends, B studies. At night, after being thoroughly exhausted at work, B studies. And while doing all these, B 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 am really glad I chose this course. I know I would spend half my time working staring in a computer at spreadsheets. I know it will be a hard few years in front of me. I also know that I want nothing more than to qualify as a professional actuary, as I do love what I do very much. But I wished I knew what I was in for before I made the decision. And I do hope that people who read this will have the ability to make an informed decision about the course that is Actuarial Science.