Actuary as a Career

Description of the Job

Actuaries complete complex calculations to gauge the likelihood of specific outcomes pertaining to investments, consumer demand, illnesses, and accidents. They also use computer software to generate reports, graphs, and tables for the purpose of reporting their findings to others. The statistical data found by actuaries is presented to pension directors, investment bankers, underwriters, marketing managers, and insurance executives. 

 

The findings help support the decisions that these individuals make regarding stock offerings, marketing planning, investment choices, and the pricing of insurance policies. The data generated by actuaries is essential because it empowers business owners to manage risk and ensure the stability of their company operations.

 

Fast Facts

  • Number of hours per weekGenerally 40-50, but can be 50+ during peaks
  • Average starting pay$56k Nationally, $63k in the Bay Area
  • Amount of travel requiredLittle to none
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Roles & Responsibilities

  • Collect and compile statistical data for additional analysis
  • Estimate probability and likely cost of events such as an accident, death, natural disaster or sickness
  • Design, test, and administer policies to minimize risk and maximize the profitability of insurance policies, pension plans, and to Produce charts and other exhibits to explain proposals and calculations
  • Explain proposals and findings to various parties, from company executives to clients, shareholders, and government officials
  • Stay updated of financial developments in the business world

Skills Needed

  • Analytical skills: Actuaries must be able to identify trends and patterns in a variety of complex data sets
  • Computer skills: Using programming languages and developing spreadsheet models, databases, and statistical models is an integral part of an actuary's job.
  • Communication and interpersonal skills: Actuaries must be able to explain complex ideas and technical data to different audiences, and have the ability to successfully lead teams and work well alongside others.
  • Problem-solving: Individuals must be able to identify a company's risks, and develop plans for the firm to manage its risks.
  • Math skills: The main tools used in this job to quantify risk are calculus, probability, and statistics.

Steps to Enter The Field

  • A bachelor’s degree is required for becoming an actuary. Some common majors for this career include Mathematics, Actuarial Science, or related fields in Business (Finance, Accounting, Economics).
  • Completing an internship while working alongside experienced actuaries can help one land a full-time position in the field. Many major insurance companies offer actuary internships.
  • Getting ahead on actuary certifications can help one enter the field. Although one doesn’t necessarily need to have certifications completed prior to entering the field, passing certification exams earlier can be beneficial. 
  • Some options for certifications include the Casualty Actuarial Society (CAS) or the Society of Actuaries (SOA).

Landscape of the Field & Companies in the Field

  • A variety of companies that work to analyze and minimize risk have actuaries on staff. Insurance companies, banks, and consultancies are three specific company types that employ actuaries.
  • Top Players in The Industry: Liberty Mutual, Travelers, AIG, Chubb, Allstate, HSBC, & the Big 4 (KPMG, PWC, Deloitte, and EY)

External Resources to Learn More & Develop Skills

  • The Actuary: A website focused on all things related to the actuary career including relevant articles and learning resources.
  • Top Blogs - Actuary: Feedspot lists the top blogs that discuss the actuary field.
  • edX Actuarial Science Course: edX’s online course centered around various actuarial science concepts.
  • Actuary Exam Prep List: AIS CPA lists and provides links to the top resources for preparing for the actuarial exams.

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