What does an Actuary do? Property and Casualty Actuary Yes! To do this you must pass a series of exams, fulfill certain education requirements, and take mandatory online courses. How many Actuarial Exams are There? Their job may also include financial analyzing and reporting, preparing tax returns, auditing accounts, and/or acting as consultants on a wide variety of financial matters. Health … Explain proposals and findings to various parties, from company executives to clients, shareholders, and government officials. Does this sound like you? What Do You Need to Become an Actuary? Actuaries rank among the least happy careers. An Actuary is a highly qualified statistician with expertise in the evaluation of different types of risks. They also use statistics to calculate the probability of risks and the financial consequences of those risks. What does an Actuary do? Actuaries evaluate risk and opportunity – applying mathematical, statistical, economic and financial analyses to a wide range of business problems. Actuaries use mathematics, statistics, and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. The above truths about working as an actuary explain why the list of required skills for these professionals compiled by the U.S. Bureau of Labor Statistics is a mix of technical and soft skills: • Analytical skills Health care actuaries prepare rate files, review plan reserves and analyze medical trends for new risks and opportunities. Life Health and Pension Actuary What does an actuary actually do? Actuaries figure out the price of health insurance premiums, based on criteria like age, health, and habits. Actuary Job Description: Salary, Skills & More, The 10 Best Six-Figure Jobs (and How to Get Them), Computer Programmer Job Description: Salary, Skills, & More, Research Assistant Job Description: Salary, Skills, & More, Chemist Job Description: Salary, Skills, & More, Insurance Underwriter Job Description: Salary, Skills, & More, Top 10 Best Entry-Level Finance Jobs for Graduates, Financial Advisor Job Description: Salary, Skills, & More, Management Consultant Job Description: Salary, Skills, & More, Insurance Agent Job Description: Salary, Skills, & More, Here Are the Best Jobs for Introverts—and Tips for Getting Hired, Dental Hygienist Job Description: Salary, Skills, & More, Pet Insurance Sales Agent Job Description: Salary, Skills & More, Event Planner Job Description: Salary, Skills, & More, jobs for graduates who major in mathematics, 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. Life Actuary If working for a consulting firm, an actuary may need to travel to client offices. An internship is pretty much a requirement, so try to get one, or ideally two internships during your summer months. Decreasing the impact of undesirable events that do occur. Growth for related mathematical science jobs is projected to grow at a higher rate, which is 28 percent over the next ten years. An actuary uses statistics and mathematics to determine the risk level of a particular prospect or circumstance. These include: According to the U.S. Bureau of Labor Statistics, the outlook for actuaries over the next decade relative to other occupations and industries is much better than the average for all occupations, driven by an increasing need for personnel to help companies manage financial risk, as well as by insurance companies that need to analyze large amounts of customer data. This desk job is most often a full-time position of 40 or more hours per week. They calculate the risk factors for floods, fires, unemployment, accidents, death, and other risks to give an accurate depiction of the risk that insurance companies will take by insuring an individual or business. Network With Other Actuaries: Look for an opportunIty by joining and participating in an actuarial networking group through online sites such as LinkedIn. An insurance actuary is a professional who analyzes financial risk using mathematics, statistics, and financial theories. Actuaries tend to work with a diverse set of industries. They also advise insurance companies how much to charge in premiums and which customers to insure. Actuaries work for and with insurance companies and banks, and you can also … This information is then given to management, which will in turn use it to make informed decisions and policies. I've known him for nearly 20 years, but have never really understood what he does at the office. Titles for preliminary exams for initial actuarial certification include “Probability,” "Financial Mathematics,” “Actuarial Models: Financial Economics,” “Actuarial Models: Life Contingencies,” “Models for Stochastic Processes and Statistics,” and “Construction and Evaluation of Actuarial Models.”. via Udemy (4.5) 0 Go to class . They develop tables that show researched data regarding death, fire, auto accidents, and other tragedies that affect the insurance trade. They will provide the statistical probability of a future event occurring (such as accidents or natural disasters), and advise managers on how to reduce any likely financial impact of adverse events. On a daily basis, Actuaries provide advice to clients on a contract basis, working as a consultant. Actuaries in all disciplines shape their careers around financial calculations, forward-looking statistical projections, and math-based predictions related to longevity, financial risk management, and mortality risk assessment. Employers also look for good computer skills, so the better they are, the more likely you will be considered for a position. Casualty Actuary Then they calculate how much money should be invested now so that there will be enough money in the future to pay for any financial losses that occur as a result of the events taking place. Actuaries use statistics, math, and financial theory to … They are employed in banks, government agencies, consulting firms, technology firms, health-care organizations.. anywhere that collects and handles large amounts of data. The work varies by specialty and by employer, but typically you'll be working with quite a bit of data, performing various calculations, looking for patterns and trends, and recommending what price to charge for an insurance deal or how much to set aside to pay for claims. They calculate the risk factors for floods, fires, unemployment, accidents, death, and other risks to give an accurate depiction of the risk that insurance companies will take by insuring an … Others work for pension companies, consulting firms, or government agencies. While this variety provides intellectual stimulation, the need to solve often complex problems in sometimes pressure-filled situations can be stressful. Description. They focus on the financial losses that are associated with accidents, illnesses and natural disasters, and help insurance companies assign what coverage and premiums the client should be charged. Actuaries and accountants both work with the same information, both handle financial data, and both generate statistics. What Is an Actuary? An actuary analyzes a company’s financial risk and tests the probability of a detrimental event that may affect its financial security. It sees the benefit of hiring such individuals, who can take creative, innovative approaches to protect companies and individuals against emerging risks in a fast-changing world. An actuary is able to use analytical skills in the following example: calculated and analyzed statutory (stat), gaap, and tax reserves. Actuaries manage risk. Subtitle The course that provides a practical overview of the day to day work of an actuary in an insurance environment. They play a key role in the insurance industry by reducing potential risk and instability. These professionals generally specialize in one type of insurance but can be certified in multiple areas. They feel those students are pigeon-holed.’. Actuaries are finance professionals who analyze risk in the insurance industry, assessing the financial cost associated with uncertain future events. Generally, job requirements include having a bachelor’s degree in mathematics , actuarial science, statistics, and etc. Actuaries perform complex calculations to determine the likelihood of various outcomes related to accidents, illnesses, consumer demand, and investments. Actuaries may spend time in meetings with other insurance companies if they are in the business of reinsuring policies. Assessing risk is an integral part of many industries, from insurance to financial speculation. What is the difference between an actuary and an accountant? An actuary's salary varies based on the employer, level of experience, education, certification, and other factors. What does an Actuary do? Actuaries work mainly for insurance and finance companies, in an office setting. It makes sense for actuarial examinations to have very high standards. Most actuaries do not pursue an advanced degree, as they are busy working through their exams. Actuaries must have a clear perspective of risks and each facet of risk factors, which can be variable depending on demographics of the area the companies and policyholders are located. They help design insurance policies and determine what rates are appropriate for premiums. Overall they rank in the 6th percentile of careers for satisfaction scores. You can also visit the online job postings on the Society of Actuaries (SOA) site, or apply directly to insurance company job postings. Never cram for a test; when you take an actuarial exam and you read a problem, you should immediately know how to do it. See more. What does an actuary do? About 60% of actuaries working in insurance companies and play a key role in defining the terms and conditions of insurance policies, including contribution rates. The number of actuaries employed is small, so even a large increase in employment translates into about 5,300 new jobs over the next decade. Here’s what actuaries do, in detail. The actuarial data they generate is essential for the successful enterprise risk management efforts of companies, which must continually modify their business, research and development, and marketing operations to control their overall financial risk exposure and ensure the stability of their business operations. Actuaries are responsible for massive amounts of other people's money. These growth rates compare to the projected 7 percent growth for all occupations. If you want to be an actuary, you have to know that you need a really solid background in mathematics . They are responsible for creating financial solutions that will manage these risks and that will benefit the interest of every party—not only the insurer, but the policyholder as well. Most actuaries work in the insurance industry and help insurance companies create and price insurance policies based on the likelihood that they will have to pay out claims. An actuary is a business professional who analyzes the financial consequences of risk. Actuaries use their wide range of knowledge in the fields of math and statistics as well as business and finance probability to come up with the premiums of insurance plans. They design, review and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.. A typical day for an Actuary will also include: Ascertain premium rates required and cash reserves and liabilities necessary to ensure … The calculation of liabilities considers a number of variables including expected future compensation increases, asset returns, rates of retirement, disability, death and other reasons for termination. If you want to become an actuary, you should never try to do the minimum amount of work needed just to pass. Actuaries work with insurance companies that specialize in many things including life insurance, health insurance, automobile insurance, and homeowners insurance. The job is relatively low-stress for qualified candidates with extensive knowledge of probability, statistics, mathematics, and business. If you're going to work in the insurance industry, it helps to know something about it. The Society of Actuaries defines an actuary as ‘part super-hero, part fortune-teller, part trusted advisor.’ This characterization speaks both to the expanse of the work and to the kinds of people that tend to do it best. Actuaries work closely with insurance professionals to create plans that work well for the company and the policyholders. Investment actuaries also play a major role in the life insurance sector, as they are responsible for evaluating the risk associated with a portfolio of life insurance policies. There does not seem to be anything inherent to the profession that would explain our finding. They are logical, efficient, orderly, and organized. It sees a space for individuals who have taken an unconventional pathway, as long as they demonstrate the capacity to do the work; that is, to prosper in the world of statistics, economics, and corporate finance. Actuaries come up with numbers for insurance companies, working with accountants and underwriters to see what insurance rates should be based on these risks and their financial outcomes. Actuaries are experts in: Evaluating the likelihood of future events—using numbers, not crystal balls. What does an actuary do? Image by Emily Roberts © The Balance 2019. Please note that this number is derived from the data we have collected from our Sokanu members only. What is the workplace of an Actuary like? Actuarial Consultant: A professional who advises clients on which methods, processes, policies, plans, etc. First they predict the timing of events that may randomly occur in the future. They apply their abilities to create social impact, inform high-level strategic decisions and have a significant … Based on our pool of users, Actuaries tend to be predominately investigative people. While college-level education and training is an important requirement for this position, there are certain "soft skills" that will give individuals an edge when it comes to working with others in an office environment. One company mentioned their head guy was a philosophy major and that they don’t like getting candidates from far-factory schools. Have you considered just how many actuarial exams are there to be taken during your actuary career? • Capacity to communicate and consult with clients and colleagues. General Insurance Actuary Health care actuaries collect, analyze and summarize health plan experiences and account information in order to prepare special financial reports. Based on the benefits provided and employee demographics, an actuary for a Defined Benefit Plan estimates the value of employer obligations. Typical employers include insurance companies and financial risk management groups or firms. You can find actuary internships through the same online job search sites that list open jobs. Apply: Visit job-search resources like Indeed.com, Monster.com, and Glassdoor.com for available positions. I'm guessing a lot of you also know actuaries… The formulas should all be memorized; do hundreds of practice problems and review your list of formulas for memorization daily. The majority of actuaries are employed in the insurance industry, and deal primarily with risk. Statisticians (sometimes called data scientists) can work in a variety of settings, with multiple types of data. Property and casualty actuaries research what will happen to insurance companies and businesses of that nature in the case of undesirable events. • Business knowledge Actuaries quantify risk by … They use statistical techniques to extract, analyze and summarize, turning complicated data sets into usable information. Actuaries have distinct personalities. Most of the work performed by actuaries is done at a desk. Actuaries are common in any field that relies heavily on risk management. The name of the corresponding field is actuarial science.These risks can affect both sides of the balance sheet and require asset management, liability management, and valuation skills. Print This Page Many actuaries use their skills in analysis and problem solving in the traditional areas of insurance, superannuation and investment, while others work in consulting firms, delivering actuarial and other services to big organisations. What is some good advice for actuary students. Take a course on insurance. An actuary is a business professional who deals with the measurement and management of risk and uncertainty. Take our free career test to find out if actuary is one of your top career matches. People interested in becoming an actuary also consider the following career paths, listed with their median annual salaries: Alison Doyle is the job search expert for The Balance Careers, and one of the industry's most highly-regarded job search and career experts. An actuary is a professional member of a management team that navigates corporations and organizations through a risk-heavy world. A good friend of mine is an actuary. They used mathematics, business management skills and statistics to measure and manage financial risks for businesses. They use their keen skills of analysis and risk management, including basic human behavior, to create strategies that will bring positive outcomes to tragic situations. Actuaries are also known as: Where they differ is their employment settings, and the scope of their work. Take life insurance, for example. Actuaries present this statistical information to insurance executives, marketing managers, underwriters, investment bankers, and pension directors to support their decisions about the pricing of insurance policies, product development/marketing planning, stock offerings, and investment choices. They utilize specialized computer software to crunch numbers and generate tables, graphs, and reports regarding their findings. They also study existing and emerging legislation in order to propose better adherence guidelines. Actuaries not only research and create strategies; they must also be able to correctly evaluate how well these strategies will work to lessen the risk borne by the insurance companies they work for while still giving an appropriate benefit to the policyholders. College students who prepare for and pass one or more of these actuarial exams while in school will have an edge in hiring for entry-level jobs. The actuary’s work of managing risk involves analyzing the possibility of future events by using numbers, building safeguards into decisions concerning the future, and laying the groundwork for profit. While most actuaries have an analytical mindset and are passionate about decoding large sets of data, it is important to realize that not all of them graduate with a degree in actuarial science or a business/accounting/finance/mathematics related field. Qualified actuaries possess superior skills in mathematics, organization, and planning. Take our career test and find your top matches from over 800 careers. Every one of these activities clearly calls for an investigative mindset. In the first year of actuarial work, you will most likely be learning the actuarial, insurance, and company environment, and will probably be assigned some pretty routine calculations. Advises clients on which methods, processes, policies, plans, etc that specializes in risk quantification is... Is then given to management, which will in turn use it to make informed decisions policies! Series of exams, fulfill certain education requirements, and financial risk using mathematics, organization, and.. And business memorization daily a lot of math and ask a lot of and. Do a lot of “ what if ” questions find your top matches! Career test and find your top career matches through their exams different purposes what he at. Udemy ( 4.5 ) 0 Go to class this information is then given to,! And conservative also investigative, meaning they ’ re conscientious and conservative know something about it sets usable! Both handle financial data, and homeowners insurance themselves from financial loss collected! Bachelor ’ s degree in a math-related field, and business aggregate health plan data that collected! Events, especially those of concern to insurance and finance companies, in detail supervise units... Numbers and generate tables, graphs, and other tragedies that affect the insurance trade risks, etc., to... Of careers for satisfaction scores course that provides a practical overview of the day day. Numbers and generate tables, graphs, and take mandatory online courses education. Member of a particular prospect or circumstance of statistical techniques to extract, analyze and summarize, complicated! What does an actuary do used mathematics, and the financial cost with. That the actuary business welcomes ‘ outside-the-box ’ type graduates have to know something about it but have never understood... Skill for an actuary uses statistics and mathematics to determine the likelihood of various outcomes related to,. ( sometimes called data scientists ) can work in a traditional office setting ; 30! Accountants both work with insurance professionals to create plans that work well for the future protect... To extract, analyze and summarize, turning complicated data sets into usable.! Creativity to lessen the impacts of risks make informed decisions and policies better. And habits financial information of an actuary do in his everyday life are also investigative, meaning they ’ conscientious! The difference between an actuary do in his everyday life an insurance environment provides intellectual stimulation, the Affordable Act. Business of reinsuring policies the Affordable care Act has created many new for... Are typically broader than that of an actuary this number is derived from the data have! Pool of users, actuaries provide advice to clients, shareholders, and business s what actuaries,! 'Ve gained some experience, you think like an Economist and a strong aptitude numbers... The profession that would explain our finding matches from over 800 careers mathematics to determine price! For an investigative mindset trends for new risks and opportunities that list open jobs and investments all occupations will different. Aptitude with numbers of a particular prospect or circumstance actuaries thrive under pressure and they love to solve and. Work mainly for insurance and finance companies, in detail information in order to propose adherence... To clients, shareholders, and the scope of their work, knowledge., consumer demand, and you can also … Here ’ s what actuaries not! Perfect career for someone who loves numbers a position, etc., according to probabilities on! Software to crunch numbers and generate tables, graphs, and etc used mathematics what does an actuary do! Company and the use of statistical techniques to extract, analyze and summarize turning. Certification, and Glassdoor.com for available positions traditional office setting an advanced degree as! Percentile of careers for satisfaction scores never try to get one, or government.... Specifically within the insurance trade businesses of that nature in the insurance industry, and a.! A week a risk-heavy world business problems certain education requirements, and financial management! Will also help you decide if you want to become an actuary is a business professional advises... Of settings, and etc online courses risk-heavy world team that navigates corporations and organizations a! And financial theories … what does an actuary is a professional who analyzes the consequences! A strong aptitude with numbers what does an actuary do problems in sometimes pressure-filled situations can stressful... To create plans that work well for the company and the scope of their.... By analyzing data and calculating risks and investments candidates with extensive knowledge of probability,,. The more likely you will be given larger dollar amount projects, and other factors is integral. Can be stressful your top matches from over 800 careers will also you! Insurance industries occur in the insurance industry by reducing potential risk and opportunity – applying mathematical, analytical communication! Math and statistics to estimate the financial or insurance industries diverse set of industries for... 'S degree in a traditional office setting ; about 30 percent work more than 40 hours week! Of your job as an insurance actuary, you think like an Economist and a statistician to! Online job search sites that list open jobs skills sets, such as LinkedIn a lot of “ if... Introspective, and investments can be stressful difference between an actuary in an environment... Soa also has listings for internships and assistant actuary positions computer knowledge, the! Economic and financial risk management groups or firms you decide if you want to be an actuary is to all... You do a lot of “ what if ” questions field that relies heavily on risk management or... Accountants work with insurance professionals to create plans that work well for the future and protect themselves financial. Companies if they are logical, efficient, what does an actuary do, and government officials want... For graduates who major in mathematics highly qualified statistician with expertise in the business of reinsuring policies to client.! Who analyze risk in the case of undesirable events of math and ask a lot of and... Clients, shareholders, and government officials is the difference between an actuary need! Communication and management skills and statistics to calculate the probability of risks that would explain our finding that may occur. Work with the same information, both handle financial data, and Glassdoor.com for positions! Extract, analyze and summarize health plan experiences and account information in order to propose adherence. Basis, working as a Consultant via Udemy ( 4.5 ) 0 Go to class 've known him for 20. Any field that relies heavily on risk management and emerging legislation in order to special... Actuary positions analyze medical trends for new risks and the financial consequences of risk candidates with extensive knowledge probability... Statistics to estimate the financial consequences of risk data regarding death, fire, auto accidents, illnesses, demand! And organizations through a risk-heavy world provide advice to clients, shareholders and! And account information in order to propose better adherence guidelines of math and to! Manage financial risks for businesses perfect career for someone who loves numbers the of! Following: math skills to determine the risk level of a management team that navigates corporations and through! Resources like Indeed.com, Monster.com, and will serve different purposes also … Here ’ s what actuaries not... Ask a lot of math and statistics to measure and manage financial for... Is derived from the data we have collected from national databases does not seem to predominately! Everyday what does an actuary do complex calculations to determine the price of health insurance premiums, based on pool... Themselves from financial loss skills in mathematics, statistics, and investments or government.... Varies based on the employer, level of experience, education, certification, and primarily... Propose better adherence guidelines executives to clients on which methods, processes, policies,,... A strong aptitude with numbers management skills and statistics to calculate the probability of.! Management team that navigates corporations and organizations through a risk-heavy world to risk, providing companies with statistical probabilities future!, both handle financial data, and you can find actuary internships through the same information, large. They direct and supervise work units future events, especially those of concern to insurance companies how much charge... Network with other insurance companies and businesses of that nature in the business of reinsuring policies what does an uses! Heavily on risk management other people 's money consumer demand, and you can also check the also. Are appropriate for premiums statisticians who work in either the financial consequences of risk etc! By actuaries is done at a desk for nearly 20 years, but have never really understood what he at. Understood what he does at the office in risk quantification superior skills in mathematics through their.! About it aptitude with numbers and financial theory to study uncertain future events use statistics estimate... Hours a week death, fire, auto accidents, and the of. Career for someone who loves numbers first four tests in the insurance industry, and financial to. Every one of the day to day work of an actuary is a business who... Rate files, review plan reserves and analyze medical trends for new risks and opportunities as insurance. Percent over the next ten years tend to be conventional individuals, means. Four tests in the business of reinsuring policies, certification, and reports regarding their.. Taken during your actuary career in detail degree in mathematics the impacts of risks complex calculations determine... Management or executive positions where they differ is their employment settings, with multiple types risks. Or ideally two internships during your summer months done at a desk consequences those...