Actuary

Your Fit

Income

$126K

Preparation

Considerable

Growth

23.2%

Definition
Your fit with this career
How much they earn
What they do
Job satisfaction
How to become

What is an Actuary?

An Actuary is a professional who applies mathematical, statistical, and financial theories to assess and manage risk in the insurance, finance, and other industries. They play a critical role in financial planning by analyzing the likelihood of future events and designing creative ways to reduce the likelihood of undesirable events or decrease their impact.

Sample job titles:

Actuarial Analyst, Actuary, Consulting Actuary, Pricing Actuary

Your test results

Why this fit score?

The fit report shows your areas of fit and misfit with Actuary.

Fit report

Test scores

The scores report summarizes what we learned about you. It shows your results on everything measured in the career test.

Scores report

How much does an Actuary earn

According to the U.S. Bureau of Labor Statistics, typical income (in USD) in 2024 was...

Bottom 10%	Bottom 25%	Median (average)	Top 25%	Top 10%
$75K per year	$91K per year	$126K per year	$165K per year	$206K per year

Compared to other careers: Median is $76K above the national average.

See income by country/state/province

What does an Actuary do?

Work environment

Actuaries typically work in office settings, often at insurance companies, consulting firms, government agencies, or as private consultants. Their work is usually desk-based, involving substantial computer use for data analysis and modeling. The profession requires collaboration with other financial experts and often involves presenting findings to non-technical stakeholders.

Quick task list

Analyzes statistical data to estimate the probability and likely cost of events such as death, sickness, injury, disability, or property loss.
Designs, tests, and administers insurance policies, investments, pension plans, and other business strategies to minimize risk and maximize profitability.
Prepares reports and presentations to explain their findings and proposals.
Consults with clients to provide advice on financial planning.
Keeps up to date with financial legislation, economics, and other changes that may affect risk assessment.

See full list of tasks with expert relevance ratings

Areas of specialization

Life Insurance and Pensions: Specializing in designing and pricing life insurance policies and pension plans.
Health Insurance: Focusing on health insurance, including medical, dental, and long-term care insurance products.
Property and Casualty Insurance: Dealing with insurance for homes, cars, and businesses.
Investment and Financial Risk: Managing financial risks within investment portfolios.
Enterprise Risk Management: Developing strategies for managing risks across an entire organization.

Description

Actuaries are vital in the financial landscape, combining deep analytical skills with business acumen to predict and manage risk. Their work is essential in helping insurance companies set premiums, determine reserves, and create profitable insurance products. They use a variety of statistical models and actuarial theories to predict the likelihood of events and the financial impact these events might have.

The role requires strong mathematical skills, expertise in data analysis and modeling, and a thorough understanding of economics and finance. Actuaries must also have excellent communication skills, as they often need to explain complex mathematical concepts to clients and stakeholders who may not have a technical background.

The field of actuarial science is continuously evolving, with new challenges emerging from changes in legislation, economics, and demographics. As such, actuaries must be committed to lifelong learning, staying up to date with new developments and advancements in their field. The profession requires passing a series of rigorous exams, which can be a lengthy process but is integral to career advancement.

Job Satisfaction

Sources of satisfaction

Utilizing mathematical expertise to solve real-world financial problems.
The intellectual challenge and continuous learning involved in the profession.
High earning potential and strong demand for actuarial skills.

You might make a good Actuary if you are...

Highly skilled in mathematics and enjoy working with numbers.
Interested in applying statistical and analytical methods to solve problems.
Detail-oriented and able to think critically about complex issues.
Good at communicating complex ideas in a simple, clear manner.
Patient and persistent, especially when it comes to passing professional exams.

Pros:

High demand for actuaries across various industries.
Strong potential for career growth and high earnings.
Intellectual stimulation and the opportunity to use advanced mathematical skills.

Cons:

The process of becoming a certified actuary can be long and challenging, requiring passing a series of difficult exams.
The work can be highly technical and demanding.
Some roles may have limited interaction with others, focusing more on data analysis and number crunching.

How to become an Actuary

Typical education

Becoming an actuary usually requires a bachelor's degree in actuarial science, mathematics, statistics, or a related field, which takes about 4 years of post-secondary education. Additionally, actuaries must pass a series of professional exams to become certified.

High school preparation

Courses:

Advanced mathematics, including calculus and statistics.
Economics and business studies to understand financial concepts.
Computer science for developing skills in data analysis and modeling.

Extra-Curricular Activities:

Joining math or statistics clubs.
Participating in math competitions.
Engaging in activities that require analytical and problem-solving skills, like chess or programming.

Preparation after high school

Obtain a bachelor's degree in actuarial science, mathematics, statistics, or a related field.
Intern with insurance companies or financial institutions to gain practical experience.
Begin taking the series of actuarial exams to become certified by a professional actuarial organization.

More resources

Society of Actuaries (SOA) - Provides resources for those interested in the actuarial profession, including details on exams.
Casualty Actuarial Society (CAS) - Focuses on actuarial education and resources for property and casualty actuaries.
Be An Actuary - A helpful resource for anyone interested in learning more about a career as an actuary.
Actuarial Zone - A comprehensive site for actuarial students and professionals with study resources and industry news.

Similar careers

Similarity is based on what people in the careers do, what they know, and what they are called. The process of establishing similarity lists is described in this white paper.