What Does an Actuary Do?
Actuaries are at the heart of the insurance industry. Experts in statistics, business and finance, actuaries use their knowledge to assess risk in order to formulate policies and minimize costs of risk for the insurance industry.
Data is the essence of the job of an actuary, as they gather, assemble and analyze information to estimate the probability and likely costs of events such as death, sickness, injury, disability or loss of property.
Those choosing an actuary career use data in such areas as pension and other retirement asset management; home, automobile and other areas of the insurance industry. Their expertise is essential in helping insurance companies design coverage plans, and in helping a wide spectrum of companies decide how they should invest their assets in order to maximize returns and minimize risks to those investments.
Median Annual Actuary Salary
The U.S. Bureau of Labor Statistics says actuaries are well-paid, especially in the legal, finance and securities and insurance industries. Here are median annual salaries for actuaries by state and percentiles from the 2023 Occupational Employment Statistics.
What Does an Actuary Do?
Although 60% of actuaries work in the insurance industry, some work in these environments:
- Financial or accounting institutions
- Corporations managing financial asset investments
- The government, managing the Medicare, Medicaid and other insurance programs
- As consultants, who may work on a contract basis in any of these fields
Actuary Career Path
Entry Level
Types of Roles
- Actuary, data analyst, life or health insurance underwriter
Getting There
- Bachelor's degree in mathematics, statistics or actuarial science, or a business-related field such as finance, economics or business, a strong background in mathematics; passing a series of professional examinations
- Technology skills and experience (specifically in Microsoft Excel and PowerPoint)
Description
- Marketing, underwriting, financial reporting and product development.
Mid Level
Types of Roles
- Pension fund manager, executive employee benefits officer, credit manager, insurance product manager
Getting There
- All entry-level requirements
- An MBA with a focus in finance or insurance
- Completion the Associate or ACAS (Casualty Actuarial Society) level exam
- Strong industry relationships and knowledge
Description
- Manage data and analysis staff and projects
- Develop policy and practices for insurance companies and businesses
Senior Level
Types of Roles
- Chief risk officer, chief financial officer
Getting There
- Create and manage a corporate structure
- Develop long-term plans for insurance companies, business and other financial institutions
- Ensure and monitor federal compliance for clients
- Strong industry relationships and knowledge
Description
- Create and manage a corporate structure
- Develop long-term plans for insurance companies, business and other financial institutions
- Ensure and monitor federal compliance for clients
- Lead teams of people and consultants