Insurance companies are the most common type of actuarial internship offer.
Students seeking an actuary internship generally must have demonstrated statistical analysis skills, as evidenced by successful completion of various undergraduate math courses, actuary courses, or economics courses. Specific qualifications for actuarial interns vary from company to company, although most employers require interns to be college students pursuing a bachelor’s degree in areas related to actuarial science and in their freshman or senior year of college. Some employers also require you to pass a standardized actuarial exam and a competitive grade point average.
Actuarial analysis is commonly used to calculate the price of insurance premiums.
Since an actuary must skillfully project the statistical probabilities that a company will have profits, losses, risks, or financial liabilities in future years based on behavioral and market analysis, an individual seeking an actuary internship must be proficient in the science of the calculation of probabilities and proportions. Consequently, the first step in obtaining an internship is to enroll in a university that offers a bachelor’s degree in statistics, actuarial science, or economics. After completing the first two years in one of these disciplines, an aspiring intern would consult with a representative at the university’s employment office, which typically has a list of companies that accept applications for actuarial science internships.
Instead of seeking help through job placement services, a student can obtain an internship by directly approaching companies that need actuarial interns; there are four main types. Insurance companies are the most common type of offering an actuary internship, as they need an actuarial team to estimate the percentage of compensation they may face in future client claims or litigation. Federal and local governments that pay pension and social service benefits also hire in-house actuaries who can analyze how these programs will be self-sustaining in the future, projecting the number of beneficiaries and anticipating funding needs.
Banks that deal daily with future profits and losses, make loans and mortgages, and sell bonds and certificates of deposit need actuaries to calculate potential future risk. This institution can offer an actuary internship lasting from six months to one year. Consulting firms that advise businesses and individuals on 401K retirement funds, long-term investments, endowments, or other financial products also tend to respond favorably to those seeking an actuary internship.
After selecting a few companies, the aspiring intern must put together an application package and organize all the exams required by the companies to be taken. Applicants usually obtain the latest transcripts from the university and attach them to the application. Internships are typically offered full-time in the summer, but part-time internships may also be available during the school year. Students occasionally get internships after graduation and use these jobs as entry points to a full-time career. If a student gets an internship, companies often offer continuing professional training and salaries.