Profession · Full profile

Actuary

Actuaries analyze financial risks and calculate probabilities for insurance policies and pension plans.

Average salary

$130,000

Salary range

$78,570 – $215,100

Training time

4 years full time

Job market

Much faster than average

9/10

Work-life balance

Good

7/10

An actuary builds statistical models to forecast the financial impact of uncertain future events such as illness, accidents, natural disasters and death. Working primarily at desks for insurance companies, consulting firms and government agencies, these professionals determine policy premiums, calculate mandatory financial reserves and advise executives on risk management. The role demands advanced mathematical capabilities, deep analytical thinking and regular communication with corporate clients and government regulators across standard weekday hours.

A workday

A day in the life

What does a workday really look like?

A regular weekday focused on building statistical models, reviewing data and preparing reports.

8:30 AM
Morning review
Check emails and organize modeling priorities for the day.
9:00 AM
Data analysis
Analyze data on claims, mortality and investment returns using SQL and Python.
11:00 AM
Team meeting
Meet with pricing colleagues to review assumptions for new insurance products.
12:00 PM
Lunch break
Midday break away from the desk.
1:00 PM
Financial modeling
Build models that estimate the likelihood and cost of events such as accidents.
3:00 PM
Client presentation
Explain results and risks to executives and clients.
4:30 PM
Documentation
Document modeling changes and update internal spreadsheets.

Task breakdown

A busier day focused on reserve calculations and formal reporting.

8:00 AM
Early start on calculations
Calculate the reserves insurers must hold to pay future claims.
10:00 AM
Model testing
Test reserve assumptions using actuarial modeling software.
12:00 PM
Brief lunch break
Midday meal at the desk or office cafeteria.
12:30 PM
Peer review
Check calculations and work papers completed by junior analysts.
2:30 PM
Regulator reporting call
Discuss regulatory filings and valuation metrics with senior staff.
4:00 PM
Report finalization
Assemble final actuarial documentation and run validation checks.
5:30 PM
End of day sign-off
Confirm submission of figures and log completed deliverables.

Salary data

What do you really earn?

Salary by experience, sector and region.

Minimum

$78,570

Average

$130,000

Maximum

$215,100

Salary by region

Region	Min	Avg.	Max
National	$78,570	$130,000	$215,100
New York	$82,250	$156,480	$277,800
Illinois	$77,790	$115,430	$202,160
Texas	$62,870	$105,020	$189,320
Pennsylvania	$78,050	$125,040	$201,820

Typical benefits

Paid study time for exams

Employers designate paid working hours so analysts can prepare for upcoming professional tests.

Exam fees paid by the employer

Companies cover testing fees and study material expenses for credential candidates.

Raises as exams are passed

Structured salary increases accompany each successfully completed professional examination.

Remote or hybrid work

Flexible work arrangements allow staff to complete computational tasks from home offices.

Pathways

Education pathways

Which paths lead to this profession?

Bachelor's degree

4 years full time

Bachelor's degree in actuarial science, mathematics or statistics

Undergraduate coursework prepares students for foundational mathematical concepts. Many students pass one or two actuarial exams before graduating. Courses in economics and finance can count toward credential requirements.

Costs: About $11,950 a year in average published tuition and fees at a public four-year college for in-state students, and $45,000 at a private nonprofit four-year college
Entry requirements: High school diploma or equivalent
High school subjects: Probability, statistics, calculus, economics, finance

Other

Several years

Professional actuarial exams

Candidates pursue professional exams leading to associate and fellow designations from the Society of Actuaries or the Casualty Actuarial Society. The associate designation usually comes before full fellowship, and employers often give paid study hours.

Entry requirements: Usually a bachelor's degree and an employer study program
High school subjects: Actuarial science, financial mathematics, predictive modeling

Profile

Skills & personality

Is this a good fit for you?

Hard skills

Probability and statisticsApplying mathematical principles to measure uncertain events and quantify financial risks.
Financial mathematicsCalculating present values, interest rates and future cash flows for contracts.
Excel and VBAConstructing complex calculation models and automated analytical workbooks.
R, Python or SQLExtracting large datasets, transforming figures and running statistical scripts.
Actuarial modeling softwareUsing specialized industry platforms to project reserves, claims and cash flows.
Insurance regulation basicsUnderstanding legal reserve mandates, statutory standards and compliance reporting requirements.

Soft skills

Analytical thinkingBreaking down complicated financial problems into structured mathematical components.
CommunicationExplaining complex statistical conclusions clearly to business partners, clients and regulators.
PersistenceMaintaining study discipline over years of challenging professional credentialing exams.
Business judgmentEvaluating commercial trade-offs when pricing policies and selecting risk assumptions.

Is this a good fit for you?

✓
MethodicalWorks carefully through intricate calculations without skipping verification steps.
✓
DisciplinedDedicates hundreds of independent hours to studying for rigorous credential exams.
✓
Detail-orientedCatches subtle inconsistencies in huge datasets and complex formulas.
✓
InquisitiveEnjoys probing the underlying causes of emerging trends in claims and mortality.
✓
PragmaticBalances theoretical mathematical rigor with real business requirements.

Market

Job market & outlook

What does the market look like?

Openings per year

1,500

Trend

Growth

+9.2%

AI impact

5/10

AI and software automate data preparation and routine calculations, while setting assumptions, judgment and explaining risk stay human.

Regional demand

Illinois

Very high concentration of corporate insurance headquarters and actuarial positions.

10/10

Georgia

High demand with regional insurance centers and consulting operations.

9/10

New York

Strong employment demand driven by major insurance carriers and consulting firms.

8/10

Pennsylvania

Robust demand across established life and health insurance organizations.

8/10

Texas

Moderate demand supported by expanding business centers and corporate offices.

4/10

Growth

Career paths

Where can this profession take you?

Vertical growth

Associate actuary
3-6 years
Attain associate credentialing after completing preliminary exams, handling advanced modeling and routine pricing tasks.
Fellow actuary
6-10 years
Achieve full fellowship credentials, leading valuation projects and designing new insurance products.
Chief actuary
12+ years
Serve in executive management overseeing all company reserving, pricing governance and regulatory compliance.

Horizontal move

Underwriter
Apply risk evaluation skills to evaluate individual policy applications and decide coverage terms.
Risk analyst
Transfer statistical capabilities to evaluate operational, market or financial risks for corporations.
Data scientist
Use advanced programming and machine learning to extract patterns from large commercial datasets.
View Data Scientist

Good to know

Practical info

Working hours: Full time on regular hours, with heavier workloads near reporting deadlines and exam study adding time early in the career.
Remote work: Remote and hybrid work are common because the work is done on computers.
Physical requirements: Office desk work at a computer.
Typical employers: Life and health insurance companies, property and casualty insurers, actuarial consulting firms, pension and benefits consultancies, reinsurance companies, government agencies.
Professional associations: Society of Actuaries, Casualty Actuarial Society

FAQ

Frequently asked questions

What does an actuary do?

An actuary builds statistical models to calculate the likelihood and financial impact of uncertain events such as death, illness, accidents and disasters. They determine insurance policy premiums, calculate legal reserve requirements and value employer pension funds. In addition, actuaries analyze claims data and communicate financial findings directly to executives and insurance regulators.

What education do you need to become an actuary?

You typically need a bachelor's degree in actuarial science, mathematics or statistics along with professional certification exams. Completing high school meets the entry requirement for college. Many students take their first exams during college, followed by employment programs offering paid study time to complete the remaining credentials.

Which professional exams must an actuary take?

Actuaries take professional exams offered by either the Society of Actuaries or the Casualty Actuarial Society. These tests lead first to an associate designation and later to a fellow designation. In addition, professionals certifying private pension plans pursue Enrolled Actuary status, while others fulfill American Academy of Actuaries qualification standards.

Can actuaries work remotely?

Yes, remote and hybrid work arrangements are common for actuaries because the job relies on computer analysis. Professionals spend their days writing code, analyzing spreadsheets and running specialized modeling software. Employers in insurance and consulting readily support remote setups, though team meetings and deadline reviews occur through digital collaboration platforms.

What hours do actuaries work?

Actuaries work full-time weekday day hours, though workloads increase during financial reporting periods. Early career professionals also spend substantial evening and weekend time preparing for actuarial exams. The general day-to-day rhythm remains predictable, providing solid stability outside of seasonal financial reporting crunches.

How will artificial intelligence impact actuarial work?

Artificial intelligence and specialized software automate data preparation and routine calculations, but core analytical judgment remains human. Actuaries still choose model assumptions, evaluate nuanced regulatory rules and present risk findings to corporate leadership. The human element of strategic decision-making and ethical review remains essential across all sectors.

Related professions

In depth

All about actuary

The background, context and details.

Core responsibilities in actuarial roles

Actuaries manage financial uncertainty. They build models that estimate the likelihood and cost of events such as illness, death, accidents and disasters, allowing organizations to manage potential financial losses before emergencies occur. Insurance firms rely on these models to set insurance premiums and test pricing for new products. They also calculate the reserves insurers must hold to pay future claims. Other actuaries value pension plans and advise employers on funding. Office desk work at a computer defines the physical work environment. Actuaries analyze complex claims data. They also evaluate investment returns.

Work settings and employers

Most positions are full time. Actuaries work across several typical employers:

Life and health insurance companies
Property and casualty insurers
Actuarial consulting firms
Pension and benefits consultancies
Reinsurance companies
Government agencies

Remote or hybrid work is common because the work is done on computers. Regular weekday day hours are standard. Still, reporting deadlines bring heavier workloads. Exam study adds significant time early in the career.

Credential requirements and career steps

Advancement requires passing rigorous professional exams. Candidates usually hold a bachelor's degree before joining an employer study program. Candidates pursue associate and fellow designations through the Society of Actuaries or the Casualty Actuarial Society. The associate designation precedes full fellowship. Many students pass one or two actuarial exams before graduating from college. Courses in economics and finance can count toward credential requirements. Employers frequently provide paid study time for exams, cover exam fees, and offer salary raises as exams are passed. Signing certain actuarial opinions requires meeting American Academy of Actuaries qualification standards, while certifying certain private pension plans under federal law requires Enrolled Actuary status.

Technological shifts and industry growth

Computers drive daily operations. While artificial intelligence and specialized software automate data preparation and routine calculations, setting core assumptions and exercising professional business judgment remain essential duties that stay strictly human. Explaining results and risks to executives, regulators and clients also stays human. Employment is projected to change by 9.2% over the next decade, with about 1,500 openings projected each year over the next decade across about 31,200 jobs in the United States. To prepare for this career path, enroll in university courses covering statistics and financial mathematics.