Actuaries held about 25,000 jobs in 2018. The largest employers of actuaries were as follows:
| Finance and insurance | 71% |
| Professional, scientific, and technical services | 15 |
| Management of companies and enterprises | 6 |
| Government | 4 |
| Self-employed workers | 1 |
Actuaries typically work on teams that often include managers and professionals in other fields, such as accounting, underwriting, and finance.
Although actuaries usually work in an office setting, those who work for consulting firms may need to travel to meet with clients.
Work Schedules
Most actuaries work full time and some work more than 40 hours per week.
Actuaries need a bachelor’s degree, typically in mathematics, actuarial science, statistics, or some other analytical field. Students must complete coursework in economics, applied statistics, and corporate finance, and must pass a series of exams to become certified professionals.
Education
Actuaries must have a strong background in mathematics, statistics, and business. Typically, an actuary has an undergraduate degree in mathematics, actuarial science, statistics, or some other analytical field.
To become certified professionals, students must complete coursework in economics, statistics, and corporate finance.
Students also should take classes outside of mathematics and business to prepare them for a career as an actuary. Coursework in computer science, especially programming languages, and the ability to use and develop spreadsheets, databases, and statistical analysis tools, are valuable. Classes in writing and public speaking will improve students’ ability to communicate in the business world.
Licenses, Certification, and Registrations
Two professional societies—the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA)—sponsor programs leading to full professional status. The CAS and SOA offer two levels of certification: associate and fellow.
The CAS certifies actuaries who work in the property and casualty field, which includes automobile, homeowners, medical malpractice, and workers’ compensation insurance.
The SOA certifies actuaries who work in life insurance, health insurance, retirement benefits, investments, and finance.
Both professional societies require applicants to complete certain educational coursework in economics, finance, and mathematical statistics while in college. Applicants also must pass seven exams for associate-level certification.
Many employers expect students to have passed at least one or two of the initial actuary exams needed for professional certification before graduation.
In addition, both CAS and SOA require that candidates take seminars on professionalism. Both societies have mandatory e-learning courses for candidates.
It typically takes 4 to 7 years for an actuary to earn the associate-level certification, because each exam requires hundreds of hours of study and months of preparation.
After becoming associates, actuaries typically take 2 to 3 more years to earn fellowship status.
The SOA offers fellowship certification in five separate tracks: life and annuities, group and health benefits, retirement benefits, investments, and finance/enterprise risk management. Unlike the SOA, the CAS does not offer specialized study tracks for fellowship certification.
Both the CAS and the SOA have a continuing education requirement. Most actuaries meet this requirement by attending training seminars that are sponsored by their employers or the societies.
Pension actuaries typically must be licensed by the U.S. Department of Labor and U.S. Department of the Treasury’s Joint Board for the Enrollment of Actuaries . Applicants must meet certain experience requirements and pass two exams administered through the SOA to qualify for enrollment.
Other Experience
Because there are different types of practice areas, including health, life, pension, and casualty, internships may be helpful for students deciding on which actuarial track to pursue.
Training
Most entry-level actuaries start out as trainees. They are typically on teams with more experienced actuaries who serve as mentors. At first, they perform basic tasks, such as compiling data, but as they gain more experience, they may conduct research and write reports. Beginning actuaries may spend time working in other departments, such as marketing, underwriting, and product development, to learn all aspects of the company’s work and how actuarial work applies to each one.
Most employers support their actuaries throughout the certification process. For example, employers typically pay the cost of exams and study materials. Many firms provide paid time to study and encourage their employees to set up study groups. Employees usually receive raises or bonuses for each exam that they pass.
Advancement
Advancement depends largely on job performance and the number of actuarial exams passed. For example, actuaries who achieve fellowship status often supervise the work of other actuaries and provide advice to senior management. Actuaries with a broad knowledge of risk management and how it applies to business can rise to executive positions in their companies, such as chief risk officer or chief financial officer.
Actuaries typically have an interest in the Thinking, Persuading and Organizing interest areas, according to the Holland Code framework. The Thinking interest area indicates a focus on researching, investigating, and increasing the understanding of natural laws. The Persuading interest area indicates a focus on influencing, motivating, and selling to other people. The Organizing interest area indicates a focus on working with information and processes to keep things arranged in orderly systems.
If you are not sure whether you have a Thinking or Persuading or Organizing interest which might fit with a career as an actuary, you can take a career test to measure your interests.
Actuaries should also possess the following specific qualities:
Analytical skills. Actuaries use analytical skills to identify patterns and trends in complex sets of data to determine the factors that have an effect on certain types of events.
Communication skills. Actuaries must be able to explain complex technical matters to those without an actuarial background. They must also communicate clearly through the reports and memos that describe their work and recommendations.
Computer skills. Actuaries must know programming languages and be able to use and develop spreadsheets, databases, and statistical analysis tools.
Interpersonal skills. Actuaries serve as leaders and members of teams, so they must be able to listen to other people’s opinions and suggestions before reaching a conclusion.
Math skills. Actuaries quantify risk by using the principles of calculus, statistics, and probability.
Problem-solving skills. Actuaries identify risks and develop ways for businesses to manage those risks.
The median annual wage for actuaries was $108,350 in May 2019. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $64,860, and the highest 10 percent earned more than $193,600.
In May 2019, the median annual wages for actuaries in the top industries in which they worked were as follows:
| Professional, scientific, and technical services | $110,960 |
| Finance and insurance | 110,020 |
| Government | 101,740 |
| Management of companies and enterprises | 98,880 |
Most actuaries work full time and some work more than 40 hours per week.
Employment of actuaries is projected to grow 20 percent from 2018 to 2028, much faster than the average for all occupations. However, because it is a small occupation, the fast growth will result in only about 5,000 new jobs over the 10-year period.
Actuaries will be needed to develop, price, and evaluate a variety of insurance products and calculate the costs of new risks.
More actuaries will also be needed to help companies manage their own risk, a practice known as enterprise risk management. Actuaries will help companies avoid, manage, and respond to any potential financial risks across all areas of their business operations. This analysis helps companies adjust their business or investment strategies to achieve economic returns and respond to new financial regulations and requirements.
Insurance companies will need actuaries to analyze the large amount of information, such as medical or property data, collected from consumers. The increase in available data will allow insurance companies to better develop new products, set competitive prices, predict consumer behavior, and make more accurate projections of future risks and costs.
In addition, health insurance companies will require more actuaries to help evaluate the effects of changing healthcare regulations and guidelines, expand into new insurance markets, and offer products to new customers.
Job Prospects
Job opportunities should be somewhat competitive for entry-level applicants because the number of students sitting for actuarial exams has increased in the past few years. Students who have passed at least two actuarial exams, have had an internship while in college, and have strong analytical and business skills should have the best job prospects for entry-level positions.
For more information about actuaries, visit
For more information about actuaries in property and casualty insurance, visit
For more information about actuaries in life and health insurance, retirement benefits, investments, and finance/enterprise risk management, visit
For more information about how to become an actuary, visit
For more information about pension actuaries and their licensing requirements, visit
American Society of Pension Professionals and Actuaries
U.S. Department of Labor and U.S. Department of the Treasury’s Joint Board for the Enrollment of Actuaries