Home » Specialties » Actuary

What Does an Actuary Do?

woman actuary assesses risk on client file

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 2022 Occupational Employment Statistics.

Actuaries

National data

Median Salary: $113,990

Projected job growth: 20.8%

10th Percentile: $71,760

25th Percentile: $84,800

75th Percentile: $155,670

90th Percentile: $199,300

Projected job growth: 20.8%

State data

State Median Salary Bottom 10% Top 10%
Alabama $82,370 $64,840 $141,040
Arizona $106,760 $79,410 $168,970
Arkansas $75,930 $49,840 $128,740
California $128,640 $78,750 $177,230
Colorado $128,490 $79,710 $203,740
Connecticut $136,240 $85,110 $217,260
District of Columbia $143,060 $95,060 $176,280
Florida $127,090 $70,990 $190,570
Georgia $119,600 $73,770 $186,830
Idaho N/A N/A N/A
Illinois $107,400 $77,510 $206,910
Indiana $113,810 $67,320 N/A
Iowa $103,580 $64,900 $171,050
Kansas $108,850 $73,290 $166,350
Louisiana $139,490 $83,340 $190,590
Maine $116,600 $64,210 $205,420
Maryland $100,410 $65,940 $173,360
Massachusetts $133,490 $82,810 $217,800
Michigan N/A N/A N/A
Minnesota $106,350 $79,310 $177,980
Mississippi $103,820 $69,900 $175,670
Missouri $110,290 $71,860 $180,320
Nebraska $105,920 $77,410 $202,120
New Hampshire $152,970 $119,430 N/A
New Jersey $127,750 $84,410 $192,440
New York $137,090 $67,080 N/A
North Carolina $135,180 $76,610 $236,460
Ohio $102,380 $64,590 $164,780
Oklahoma $91,890 $42,410 $128,300
Oregon $121,250 $67,700 $174,830
Pennsylvania $104,230 $65,190 $205,620
Rhode Island $97,890 $59,330 $204,610
South Carolina $103,010 $76,580 $171,450
South Dakota $105,610 $98,550 $158,750
Tennessee $82,340 $62,240 $125,940
Texas $108,390 $67,200 $164,390
Utah $61,090 $46,550 $173,390
Vermont $96,360 $79,400 $194,840
Virginia $114,230 $67,300 $191,050
Washington $124,910 $80,220 $170,060
Wisconsin $108,610 $63,840 $195,700

Source: U.S. Bureau of Labor Statistics (BLS) 2022 median salary; projected job growth through 2031. Actual salaries vary depending on location, level of education, years of experience, work environment, and other factors. Salaries may differ even more for those who are self-employed or work part time.

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
Search for programs near you