Career profile for Actuary

What does an Actuary do?

Actuaries analyze statistical data, such as mortality, accident, sickness, disability, and retirement rates and construct probability tables to forecast risk and liability for payment of future benefits.

In addition, Actuaries may ascertain insurance rates required and cash reserves necessary to ensure payment of future benefits.

What kind of tasks does an Actuary perform regularly?

Actuaries are often responsible for overseeing or executing some or all of the following tasks:

Ascertain premium rates required and cash reserves and liabilities necessary to ensure payment of future benefits.
Design, review, and help administer insurance, annuity and pension plans, determining financial soundness and calculating premiums.
Determine, or help determine, company policy, and explain complex technical matters to company executives, government officials, shareholders, policyholders, or the public.
Provide advice to clients on a contract basis, working as a consultant.
Analyze statistical information to estimate mortality, accident, sickness, disability, and retirement rates.
Construct probability tables for events such as fires, natural disasters, and unemployment, based on analysis of statistical data and other pertinent information.
Negotiate terms and conditions of reinsurance with other companies.
Collaborate with programmers, underwriters, accounts, claims experts, and senior management to help companies develop plans for new lines of business or improvements to existing business.
Determine equitable basis for distributing surplus earnings under participating insurance and annuity contracts in mutual companies.
Testify before public agencies on proposed legislation affecting businesses.
Determine policy contract provisions for each type of insurance.
Testify in court as expert witness or to provide legal evidence on matters such as the value of potential lifetime earnings of a person disabled or killed in an accident.

The above responsibilities are specific to Actuaries. More generally, Actuaries are involved in several broader types of activities:

Activities	Importance	Details
Analyzing Data or Information		Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.
Processing Information		Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
Making Decisions and Solving Problems		Analyzing information and evaluating results to choose the best solution and solve problems.
Working with Computers		Using computers and computer systems (including hardware and software) to program, write software, set up functions, enter data, or process information.
Getting Information		Observing, receiving, and otherwise obtaining information from all relevant sources.

Analyzing Data or Information

Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.

Processing Information

Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.

Making Decisions and Solving Problems

Analyzing information and evaluating results to choose the best solution and solve problems.

Working with Computers

Using computers and computer systems (including hardware and software) to program, write software, set up functions, enter data, or process information.

Getting Information

Observing, receiving, and otherwise obtaining information from all relevant sources.

What is an Actuary salary?

The median salary for an Actuary is $111,030, and the average salary is $123,180. Both the median and average roughly describe the middle of the Actuary salary range, but the average is more easily affected by extremely high or low salaries.

Many Actuaries earn significantly more or less than the average, due to several factors. About 10% of Actuaries earn less than $66,030 per year, 25% earn less than $83,550, 75% earn less than $151,060, and 90% earn less than $196,010.

Between the years of 2020 and 2030, the number of Actuaries is expected to change by 24.5%, and there should be roughly 2,400 open positions for Actuaries every year.

Median annual salary: $111,030
Typical salary range: $66,030 - $196,010
Projected growth (2020 - 2030): 24.5%

What personality traits are common among Actuaries?

Interests

Career interests describe a person's preferences for different types of working environments and activities. When a person's interest match the demands of an occupation, people are usually more engaged and satisfied in that role.

Compared to most occupations, those who work as an Actuary are usually higher in their Conventional and Investigative interests.

Actuaries typically have very strong Conventional interests. Conventional occupations frequently involve following set procedures and routines. These occupations can include working with data and details more than with ideas. Usually there is a clear line of authority to follow.

Also, Actuaries typically have moderate Investigative interests. Investigative occupations frequently involve working with ideas, and require an extensive amount of thinking. These occupations can involve searching for facts and figuring out problems mentally.

Values

People differ in their values, or what is most important to them for building job satisfaction and fulfillment.

Compared to most people, those working as an Actuary tend to value Working Conditions, Achievement, and Independence.

Most importantly, Actuaries strongly value Working Conditions. Occupations that satisfy this work value offer job security and good working conditions.

Second, Actuaries moderately value Achievement. Occupations that satisfy this work value are results oriented and allow employees to use their strongest abilities, giving them a feeling of accomplishment.

Lastly, Actuaries moderately value Independence. Occupations that satisfy this work value allow employees to work on their own and make decisions.

Psychological Demands

Each occupation brings its own set of psychological demands, which describe the characteristics necessary to perform the job well.

In order to perform their job successfully, people who work as Actuaries must consistently demonstrate qualities such as analytical thinking, attention to detail, and integrity.

Below, you'll find a list of qualities typically required of Actuaries, ranked by importance:

Demands	Importance	Details
Analytical Thinking		Job requires analyzing information and using logic to address work-related issues and problems.
Attention to Detail		Job requires being careful about detail and thorough in completing work tasks.
Integrity		Job requires being honest and ethical.
Achievement/Effort		Job requires establishing and maintaining personally challenging achievement goals and exerting effort toward mastering tasks.
Dependability		Job requires being reliable, responsible, and dependable, and fulfilling obligations.

Analytical Thinking

Job requires analyzing information and using logic to address work-related issues and problems.

Attention to Detail

Job requires being careful about detail and thorough in completing work tasks.

Integrity

Job requires being honest and ethical.

Achievement/Effort

Job requires establishing and maintaining personally challenging achievement goals and exerting effort toward mastering tasks.

Dependability

Job requires being reliable, responsible, and dependable, and fulfilling obligations.

What education and training do Actuaries need?

Many Actuaries will have a four-year bachelor's degree, but some do not.

Actuaries usually need several years of work-related experience, on-the-job training, and/or vocational training.

Educational degrees among Actuaries

2.0% completed some college coursework
0.4% earned a Associate's degree
62.2% earned a Bachelor's degree
23.8% earned a Master's degree
11.7% earned a doctorate or professional degree

Knowledge and expertise required by Actuaries

Actuaries may benefit from understanding of specialized subject areas, such as mathematics, economics and accounting, or computers and electronics knowledge.

The list below shows several areas in which most Actuaries might want to build proficiency, ranked by importance.

Knowledge areas	Importance	Details
Mathematics		Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
Economics and Accounting		Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.
Computers and Electronics		Knowledge of circuit boards, processors, chips, electronic equipment, and computer hardware and software, including applications and programming.
Law and Government		Knowledge of laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules, and the democratic political process.
Administration and Management		Knowledge of business and management principles involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources.

Mathematics

Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.

Economics and Accounting

Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.

Computers and Electronics

Knowledge of circuit boards, processors, chips, electronic equipment, and computer hardware and software, including applications and programming.

Law and Government

Knowledge of laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules, and the democratic political process.

Administration and Management

Knowledge of business and management principles involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources.

Important Abilities needed by Actuaries

Actuaries must develop a particular set of abilities to perform their job well. Abilities are individual capacities that influence a person's information processing, sensory perception, motor coordination, and physical strength or endurance. Individuals may naturally have certain abilities without explicit training, but most abilities can be sharpened somewhat through practice.

For example, Actuaries need abilities such as mathematical reasoning, number facility, and deductive reasoning in order to perform their job at a high level. The list below shows several important abilities for Actuaries, ranked by their relative importance.

Abilities	Importance	Details
Mathematical Reasoning		The ability to choose the right mathematical methods or formulas to solve a problem.
Number Facility		The ability to add, subtract, multiply, or divide quickly and correctly.
Deductive Reasoning		The ability to apply general rules to specific problems to produce answers that make sense.
Oral Comprehension		The ability to listen to and understand information and ideas presented through spoken words and sentences.
Written Comprehension		The ability to read and understand information and ideas presented in writing.

Mathematical Reasoning

The ability to choose the right mathematical methods or formulas to solve a problem.

Number Facility

The ability to add, subtract, multiply, or divide quickly and correctly.

Deductive Reasoning

The ability to apply general rules to specific problems to produce answers that make sense.

Oral Comprehension

The ability to listen to and understand information and ideas presented through spoken words and sentences.

Written Comprehension

The ability to read and understand information and ideas presented in writing.

Critical Skills needed by Actuaries

Skills are developed capacities that enable people to function effectively in real-world settings. Unlike abilities, skills are typically easier to build through practice and experience. Skills influence effectiveness in areas such as learning, working with others, design, troubleshooting, and more.

Actuaries frequently use skills like mathematics, critical thinking, and judgment and decision making to perform their job effectively. The list below shows several critical skills for Actuaries, ranked by their relative importance.

Skills	Importance	Details
Mathematics		Using mathematics to solve problems.
Critical Thinking		Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
Judgment and Decision Making		Considering the relative costs and benefits of potential actions to choose the most appropriate one.
Reading Comprehension		Understanding written sentences and paragraphs in work-related documents.
Active Listening		Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.

Mathematics

Using mathematics to solve problems.

Critical Thinking

Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.

Judgment and Decision Making

Considering the relative costs and benefits of potential actions to choose the most appropriate one.

Reading Comprehension

Understanding written sentences and paragraphs in work-related documents.

Active Listening

Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.

What is the source of this information?

The information provided on this page is adapted from data and descriptions published by the U.S. Department of Labor, Employment and Training Administration under the CC BY 4.0 license. TraitLab has modified some information for ease of use and reading, and the U.S. Department of Labor, Employment, and Training Administration has not approved, endorsed, or tested these modifications.

If you have any questions or suggestions about this information, please send a message.

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