What does an Actuary do?
Actuaries typically work for insurance companies to help them design their policies and set the premiums. They work on behalf of the company, carefully analyzing each policy to ensure profitability while maintaining competitiveness. It’s common for Actuaries to specialize in one area, such as health insurance, life insurance or property and casualty insurance. Some Actuaries may work for consulting firms, government entities or pension companies handling their property, life, casualty and health insurance policies.
They look at pension plans to make sure the company will be able to pay out the benefits and help the organization create additional retirement benefits. No matter what type of company they work for, Actuaries use statistical data to assess financial risks and how they might affect an organization financially.
Actuary skills and qualifications
Actuaries use various skills to perform their job duties effectively, which can include:
- Knowledge of statistics, probability and calculus
- Strong written and verbal communication skills to clearly relay information to others
- Analytical skills
- Experience with computers and statistical modeling software
- Knowledge of business and financial concepts
- Organizational skills to keep track of multiple projects
Actuary experience requirements
Most employers require Actuaries to have previous actuarial experience through an internship or entry-level position. Many Actuaries begin their careers as apprentices or trainees to gain work experience by performing the most basic actuarial duties. You might prefer candidates who have already completed the trainee stage and have a certain number of years of experience.
Actuary education and training requirements
A qualified Actuary candidate has, at a minimum, a bachelor’s degree in actuarial science or a degree in a related field, such as mathematics or statistics. Some actuaries decide to pursue further education and obtain a master’s degree in actuarial science.
Actuaries also earn certification as an associate or fellow through the Society of Actuaries or the Casualty Actuarial Society. Actuaries must pass a series of exams to earn these designations, which can take some time to complete. For example, the associate designation can take up to seven years and the fellow designation takes even longer. A common expectation for Actuary candidates is to pass at least one of the associate exams.
Actuary salary expectations
According to Indeed Salaries, the average salary for an Actuary is $116,041 per year. The exact salary for an Actuary may vary, depending on a candidate’s education and experience and the geographical location.
Actuary salary expectations
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Common salary:
129079.27 YEARLY -
Typical salaries range from
35000.00 -281000.00 YEARLY - Find more information on Indeed Salaries
*Indeed data –
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Actuary job description FAQs
What are the different types of insurance Actuaries?
Most Actuaries who work for insurance companies specialize in certain fields. A property and casualty insurance Actuary creates policies insuring people against property loss and other liabilities due to fires, natural disasters or other accidents. Some Actuaries work primarily on health insurance policies by estimating the cost of patient care. Others evaluate the common risk factors of employees to estimate and build appropriate life insurance policies.
Do Actuaries have different responsibilities in different industries?
Some Actuaries work outside the insurance industry to develop policies and plans for individuals or companies. When they work in enterprise roles, Actuaries find potential financial, geopolitical or economic risks that could provide short- or long-term negative effects on the company and develop logical strategies accordingly. Other Actuaries serve in the public sector to analyze potential changes to government benefits like Medicare or Social Security. There are also Actuaries who work as contract employees traveling to different companies, providing consulting advice on how to build policies best suited for their business.
What’s the difference between an Actuary and a Financial Analyst?
While both positions perform financial data analysis and provide recommendations, the main difference is what they analyze. Financial Analysts look at the complete financial picture, especially related to investments and funds, to help a company or investor develop an investment or business strategy to remain in strong financial standing. Meanwhile, Actuaries focus more on the financial impacts of risk to help organizations manage those risks and avoid financial losses.
What makes a good Actuary?
A strong Actuary is passionate about how numbers can help build more accurate projections and estimates. You also benefit from a candidate who finds creative solutions to complex challenges when designing new policies. Actuaries regularly meet with leadership members, Programmers, finance teams and Accountants, so they need to know how to effectively communicate with others. They should also have the confidence to speak up with their ideas and convince decision-makers that certain policies are the best options.
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