Actuaries use math and statistics to predict and manage risks, helping companies make smart financial decisions and plan for the future.
Median income:
$120,000 annually or $57.69 per hour.
Lifestyle:
Actuaries typically have a true 40-hour work week, adhering to the standard 9-to-5 schedule in an office setting.
Exciting Parts of the Job:
Working on different types of insurance and financial plans
Combining math with physical science in property insurance
Assessing how natural disasters affect insurance prices
Setting prices for insurance policies based on potential future events
Challenging Parts of the Job:
Taking difficult statistical and regulatory exams
Having a long certification process, needing to pass around 10 exams depending on the specialization you prefer
Education Requirements:
A bachelor’s degree is typically required.
Job Outlook
The future for actuaries is bright, with the profession expected to grow 23% from 2022 to 2032, which is much faster than the average of all occupations.
This is perfect for you if:
You love and enjoy solving math problems
You can handle intricate details and regulations
You are a persistent and resilient learner
If that sounds like you, definitely watch our interview with Will Ringhofer to learn more about being an actuary here!
Day in the Life
Schedule:
A regular 40-hour work week, usually with a 9-to-5 weekday schedule. Some roles may require additional hours during busy seasons to meet deadlines or handle complex projects.
Setting:
Most actuaries work in an office setting, though some may have the option to work hybrid or remotely.
Tasks:
Analyze data, assess risks, create financial models, evaluate potential impacts of future events including natural disasters, and ensure that policies are financially sound.
Topics:
Statistical methods, financial trends, and risk management.
Skills:
Proficient in advanced mathematical and statistical methods, data analysis, financial modeling, and using varied actuarial software and tools.
Tools:
A laptop or computer with access to Excel, SQL, Google Sheets, SAS, and different map-making and database software.
Common Characteristics
Natural Talents (strengths):
Naturally good at analytical thinking, math, and problem-solving, with meticulous attention to detail, and efficient time management skills.
Interests:
Enjoys solving complex problems, researching, following rules and procedures, working with data, and applying mathematical concepts to real-world problems.
Personality:
Typically have investigative, conventional, and realistic personality types. They are analytical, structured, and practical.
Values:
Precision in financial modeling, a stable work environment, and professional development.
*Terms used to describe interests and personality are based on the Holland Framework.
How to Become an Actuary
Education Requirements:
A bachelor’s degree in mathematics, statistics, actuarial science, or a related field is typically required, along with passing a series of professional actuarial exams and obtaining certifications from professional bodies such as the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS).
Preferred Majors
Pursuing majors in mathematics, statistics, actuarial science, finance, economics, applied mathematics, engineering, data science, and business administration with a focus on quantitative methods, or any related field can be helpful.
Specialties and Similar Career Paths
Data Scientist
Economist
Financial Engineer
Financial Forecaster
Financial Analyst
Investment Analyst
Mathematical Statistician
Pension Consultant
Quantitative Analyst
Risk Consultant
Risk Manager
Statistical Modeler
Valuation Analyst
Advice from Will
Job hunt tips to set yourself apart:
Networking is key, especially when you’re starting. Focus on connecting with the small actuarial community and pass at least 1 or 2 actuarial exams while in college. Passing more exams can set you apart but may affect starting salary expectations, so balance your credentials with market expectations.
What Will would tell his younger self if he was just getting started:
“Keep staying disciplined. You’re on the right path, keep working hard.”
Watch the full interview with Will:
Data on job profiles is based on information supplied by the Occupational Outlook Handbook from the Bureau of Labor Statistics, My Next Move from the National Center for O*NET Development, and the O*NET Program, sponsored by U.S. Department of Labor, Employment, and Training Administration. Accessed 14 August 2024.
