Actuaries
Overview
Introduction
Actuaries use statistical formulas and techniques to calculate the probability of events, such as death, disability, sickness, unemployment, retirement, and property loss. Actuaries develop formulas to predict how much money an insurance company will pay in claims, determining the overall cost of insuring a group, business, or individual. Increased risk raises the potential costs to the company, which, in turn, raises its rates. Actuaries analyze risk to estimate the number and amount of claims an insurance company might have to pay...
Quick Facts
Median Salary
Employment Prospects
Minimum Education Level
Experience
Skills
Personality Traits
Earnings
The U.S. Department of Labor reports that actuaries earned a median annual salary of $120,000 in May 2023. The lowest 10 percent earned less than $75,380, while the top 10 percent earned more than $209,310. Actuaries working for insurance companies receive paid vacations, health and life insurance, pension plans, and other fringe benefits.
Work Environment
Actuaries spend much of their 40-hour workweek behind a desk poring over facts and figures, although some travel to various organization units or other businesses. This is especially true of the consulting actuary, who will likely work longer hours and travel more. Consulting actuaries tend to have more diverse work and personal interaction when working with various clients. Though the work can...
Outlook
The U.S. Department of Labor predicts that employment for actuaries will grow much faster than the average for all occupations through 2032. The insurance industry—the leading employer of actuaries—is expected to experience growth, with many new fields, such as annuities, climate change risk analysis, and terrorism-related property risk analysis, compensating for the shrinking life insurance in...