Among science majors, Applied Mathematics and Actuarial Science are two highly specialized, data- and logic-driven fields. Both rely on mathematical models and statistics, and graduates are in high demand with strong earning potential.
However, their learning goals, application areas, and career paths are very different. This article will compare Applied Math and Actuarial Science in terms of definition, curriculum, career, and skills, helping you make the right choice.
1. What is Applied Mathematics?
Applied Mathematics is the science of applying mathematical theory to solve real-world problems, focusing on modeling, analysis, and algorithm implementation. Its applications span engineering, computer science, economics, biology, environmental science, and more.
- Train students to use calculus, linear algebra, probability, and other tools to solve practical problems.
- Emphasize interdisciplinary analysis and computational methods, focusing on the combination of research and application.
- Calculus
- Linear Algebra
- Differential Equations
- Numerical Analysis
- Optimization Methods
- Probability & Statistics
- Mathematical Modelling
- Computational Methods
- Engineering modeling (e.g., structural analysis, fluid dynamics)
- Economic forecasting and financial modeling
- AI / machine learning algorithms
- Big data analysis and simulation systems
- Mathematical research and higher education
2. What is Actuarial Science?
Actuarial Science combines statistics, mathematics, economics, and risk management, focusing on evaluating uncertainty, predicting risk, and developing strategies. It is widely used in insurance, pensions, finance, and corporate risk control.
- Train professionals to assess financial and insurance risks under uncertainty.
- Emphasize probability models, insurance theory, financial mathematics, and data analysis skills.
- Probability Theory
- Statistics for Actuarial Science
- Financial Mathematics
- Life Contingencies
- Risk Theory
- Survival Analysis
- Actuarial Modelling
- Pension & Insurance Economics
- SOA (Society of Actuaries, US)
- IFoA (Institute and Faculty of Actuaries, UK)
- CAS (Casualty Actuarial Society, US)
- MIA / MAS (Malaysian Actuarial Society)
3. Key Differences Table
| Dimension | Applied Mathematics | Actuarial Science |
|---|---|---|
| Nature | Solving real-world problems with math tools | Assessing/managing risk in finance/insurance |
| Application Areas | Engineering, computing, physics, data science | Insurance, banking, investment, pensions |
| Structure | Emphasizes modeling and computation | Emphasizes probability and risk theory |
| Technical Tools | MATLAB, Python, R, modeling software | Excel, R, VBA, insurance systems |
| Career Focus | Academia, research, data analysis, modeling | Actuary, risk consultant, insurance analyst |
| Certification | No specific, but can pursue grad studies | Usually requires actuarial exams (SOA, IFoA, etc.) |
4. Career Pathways
- Data Scientist
- Algorithm Developer
- Operations Research Analyst
- Mathematical Modeler
- Academic/Researcher
- Financial Modeler / Risk Engineer
Especially suitable for high-paying fields related to AI, engineering, tech, and financial data.
- Actuary
- Insurance Analyst
- Risk Management Consultant
- Pension Analyst
- Bank Credit Risk Analyst
- Healthcare Insurance Modeler / Premium Designer
Actuary is one of the most valuable and rewarding careers globally, requiring multi-stage exams.
5. Who is it for?
| If you… | Recommended Major |
|---|---|
| Like math and modeling, not limited to finance/insurance | Applied Mathematics |
| Want to solve engineering, AI, physics, or biology problems | Applied Mathematics |
| Interested in insurance, financial risk, life expectancy | Actuarial Science |
| Willing to take long certification exams for high pay | Actuarial Science |
| Patient with complex probability and detailed calculations | Actuarial Science |
| Want a math edge in tech fields | Applied Mathematics |
6. Learning & Assessment
- Balanced theory and modeling practice
- Mastery of multiple math fields and derivation
- Project-based, often includes coding/modeling competitions
- Emphasizes precision, logic, and patience
- Academic pressure focused on exam stages (SOA, etc.)
- Courses designed for professional application and exam prep
7. Recommended Universities & Courses (Malaysia/China/International)
- Malaysia: Heriot-Watt University Malaysia – BSc Actuarial Science (exemption courses); Sunway University – with Lancaster University; University of Malaya (UM) – applied math/actuarial double major; UTAR / UCSI / Taylor’s – math & actuarial double major options
- China: Zhongnan University of Economics and Law – actuarial leader; Fudan / Shanghai University of Finance and Economics – math & financial modeling; Nankai / Renmin University – actuarial & statistics; Peking University – applied math research
- International: University of Waterloo (Canada) – top actuarial program; Oxford / Cambridge – math + financial modeling; University of Melbourne / UNSW (Australia) – actuarial & data; LSE – applied math & statistics; Columbia University (US) – applied math, tech focus
8. FAQ
- Q1: Is actuarial science just a branch of applied math?
No. While actuarial science is based on math, its goals, career path, and certification are different and more career-oriented. - Q2: Do you have to pass SOA exams to study actuarial science?
If you want to be a certified actuary, passing SOA or IFoA exams is required. Some universities offer exam exemptions. - Q3: Is applied math undervalued in the job market?
No. With AI, data science, and Industry 4.0, applied math talent is in demand, especially in algorithms, modeling, and analytics. - Q4: Is actuarial science very difficult?
It is challenging, especially the long exam process and low pass rates. But the high salary and stability attract many math talents.
9. Conclusion
If you love cross-disciplinary math practice and want to explore many industries, Applied Mathematics opens doors to tech and engineering.
If you are interested in risk assessment, insurance models, and long-term financial forecasting, and are willing to pursue professional certification, Actuarial Science leads to a high-paying actuarial career.
US 12861 
GB 10323 
CA 9297 
AU 8191 
IE 6934 
NZ 2457 
BR 2420 
MX 645 
