Actuaries
Overview
Actuaries are math and statistics experts who help companies understand and manage financial risks by analyzing data to predict the likelihood of events like accidents, natural disasters, or health issues. They use advanced software and statistical models to design insurance policies, calculate how much money companies need to keep in reserve, and create detailed reports and presentations for executives and clients. This career combines strong analytical skills with business communication, often involving collaborative work with teams across different departments. Most actuaries have degrees in mathematics, statistics, or actuarial science and work in modern office environments with flexible schedules.
Did you know?
Actuaries in the US must pass a series of rigorous exams administered by professional organizations like the Society of Actuaries or Casualty Actuarial Society to become certified.
At a Glance
Median Wage
$121,524.36 Avg/yr
Growth
Fast Growing
Top Skill
Instructing
Key Responsibilities
- Collaborate with programmers, underwriters, accounts, claims experts, and senior management to help companies develop plans for new lines of business or improvements to existing business.
- Construct probability tables for events such as fires, natural disasters, and unemployment, based on analysis of statistical data and other pertinent information.
- Provide advice to clients on a contract basis, working as a consultant.
- Determine policy contract provisions for each type of insurance.
- Determine, or help determine, company policy, and explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public.
- Manage credit and help price corporate security offerings.
- Negotiate terms and conditions of reinsurance with other companies.
- Testify in court as expert witness or to provide legal evidence on matters such as the value of potential lifetime earnings of a person disabled or killed in an accident.
- Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.
- Analyze statistical information to estimate mortality, accident, sickness, disability, and retirement rates.
- Testify before public agencies on proposed legislation affecting businesses.
- Determine equitable basis for distributing surplus earnings under participating insurance and annuity contracts in mutual companies.
- Explain changes in contract provisions to customers.
- Design, review, and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
- Provide expertise to help financial institutions manage risks and maximize returns associated with investment products or credit offerings.
Career Considerations
Professional Certification Requirements
Actuaries in the US must pass a series of rigorous exams administered by professional organizations like the Society of Actuaries or Casualty Actuarial Society to become certified.
Excellent Job Market Growth
The Bureau of Labor Statistics projects 18% job growth for actuaries from 2022-2032, much faster than the average for all occupations.
High Earning Potential
Actuaries in the US earn a median annual salary of over $100,000, significantly above the national average, with senior positions commanding even higher compensation.