Actuary

What is this job like?		Back to Top

Actuaries deal with risk. They decide how likely things such as death, sickness, injury, disability, and loss of property are to occur, as well as the costs of these things.

Actuaries also decide how much money it will take in order to get a certain amount of retirement income. They help design insurance policies and pension plans and try to make sure that they are sound. Actuaries may need to explain their findings to company executives, government officials, and the public. They may also testify in court as an expert.

Most actuaries work for insurance companies. Some work in life and health insurance. Others work in property and casualty insurance. Actuaries make tables that show how likely it is that a claim will be made by a customer. They use these tables to decide how much the company will have to pay in claims. They make sure that the company charges enough to pay these claims. This amount must be enough for the company to make a profit. It must also be in line with what other insurance companies are charging.

Actuaries work in offices. They often work at least 40 hours a week. Some actuaries may travel to meet with clients.

How do you get ready?		Back to Top

Actuaries need to know a lot about math and general business. Those just starting in the field often have a college degree in math, actuarial science, or statistics. Some have a degree in economics, finance, or accounting.

There are about 100 colleges and universities that have an actuarial science program. Most colleges have degree programs in math, statistics, economics, or finance. Some companies hire people who have degrees in other areas. However, these people must be good at math and able to pass the actuarial exams. The exams are held two times a year and it is good to pass all of the exams as soon as possible. More companies are hiring people who have some training in liberal arts and business. It is also important to be able to communicate well. Computer skills are becoming more important too.

How much does this job pay?		Back to Top

In 2006, one half of all actuaries earned between $58,710 and $114,570. The average starting salary for graduates with a degree in actuarial science was $53,754 in 2007.

How many jobs are there?		Back to Top

Actuaries held about 18,000 jobs in 2006. Five out of ten worked for insurance carriers. Others worked for pension funds and insurance agents and brokers. More actuaries are working for firms that offer a lot of different services. These include such things as management and public relations, or consulting services.

What about the future?		Back to Top

Employment for actuaries is expected to grow much faster than the average for all jobs through 2016. Examinations to become an actuary are very difficult; those who pass have a good chance for a job. Actuaries working on health care issues will have good chances for a job because many more people will need health care in the future. Actuaries also will be needed to work on other issues.

Are there other jobs like this?		Back to Top

• Accountants
• Budget analysts
• Economists
• Financial analysts
• Insurance underwriters
• Market and survey researchers
• Mathematicians
• Personal financial advisors
• Statisticians

Where can you find more information?		Back to Top

More BLS information about actuaries can be found in the Occupational Outlook Handbook. The Handbook also shows where to find out even more about this job.

Last Modified Date: April 29, 2008