What Do Actuaries Do?Actuaries combine business and math skills to model risks in insurance and finance. Their calculations ensure that companies can keep financial promises. One unique thing about the actuarial profession is its certification process. Actuaries must pass a series of exams on subjects ranging from probability and statistics to finance and insurance. These exams are great for actuaries because, like medical or law certifications, they give employers proof of an actuary's proficiency. |
Is Being an Actuary a Good Career?The Wall Street Journal did the math to find "good jobs" and ranked being an actuary one of the top jobs for 2018. Actuaries are well compensated – entry-level positions can pay upwards of $60,000, and many experienced actuaries can earn between $150,000 and $250,000 annually! They also have a great work-life balance. Most actuaries report low stress and average 40-hour work-weeks. |
Where Do Actuaries Work?
|
Most actuaries – about 60% – work in the insurance industry. Actuaries are key in pricing and valuing the policies that insurance companies sell. There are many types of insurance companies: some examples include life, health, and property and casualty.
Another common career path for actuaries is consulting. When companies need to perform actuarial calculations and don't employ actuaries themselves, they hire actuarial consultants. This path is great for actuaries who want a dynamic, fast-paced work environment. Career paths outside of insurance and consulting are sometimes called nontraditional. Actuaries in nontraditional roles may work in enterprise risk management, banking and finance, or data science. Actuaries who consider themselves "entrepreneurial" can thrive in nontraditional roles, where they have more freedom to create their own unique career paths. |
Life Insurance
<
>
Life insurance products provide benefits that are contingent on the life of the policyholder. Some examples of life insurance products are whole life insurance, universal life insurance, and term life insurance. If you’re interested in the content from RM 411/RM 412 and SOA (Society of Actuaries) Exam LTAM, then the life insurance industry may be for you. Companies that offer life insurance and commonly hire Penn State actuarial students: Prudential Financial, MetLife, Guardian Life, New York Life, Transamerica, Lincoln Financial Group, Erie Insurance. Life actuaries become certified by the SOA. After earning ASA (Associate of the Society of Actuaries) designation, most complete the ILA (Individual Life and Annuities) track to earn FSA (Fellow of the Society of Actuaries) designation. Health Insurance
<
>
Health insurance covers medical expenses for individuals. Health insurance companies may administer individual coverage plans, which individuals purchase directly from the insurance company, or employer-sponsored/group coverage plans, which individuals purchase through their employer. If you’re interested in the health content from RM 420/RM 430 and SOA Exam STAM, then the health insurance industry may be for you. Companies that offer health insurance and commonly hire Penn State actuarial students: Cigna, Aetna, Highmark Health. Health actuaries become certified by the SOA. After earning ASA designation, most complete the Group and Health track to earn FSA designation. Property & Casualty (P&C) Insurance
<
>
Property and casualty insurance is a broad category of insurance products that cover either damage to a policyholder’s property, or liability expenses from accidents in which the policyholder is legally responsible for another person’s injuries or damage to the person’s property. Examples of P&C insurance products include homeowner’s insurance, car insurance, and renter’s insurance. If you’re interested in the content from RM 420, then the property and casualty industry may be for you. Companies that offer property and casualty insurance and commonly hire Penn State actuarial students: Nationwide, Chubb, Erie Insurance, Geico, Selective Insurance. Property and casualty actuaries become certified by CAS (Casualty Actuarial Society). P&C actuaries can earn both ACAS (Associate of the Casualty Actuarial Society) and FCAS (Fellow of the Casualty Actuarial Society) designation by completing exams and online coursework. Reinsurance
<
>
Reinsurance, or stop-loss insurance, is a type of insurance that is purchased by other insurance companies to protect against the risk of not having enough cash on hand (reserves) to pay obligations to policyholders. Actuarial work within a reinsurance company depends on the type of insurance company being reinsured – life actuaries, health actuaries, and P&C actuaries can all work for reinsurance companies. Companies that offer reinsurance and commonly hire Penn State actuarial students: Munich Reinsurance, Swiss Reinsurance. Actuaries interested in reinsurance may choose to become certified by CAS or SOA, depending on whether they are pursuing P&C reinsurance or Life/Health reinsurance. Consulting
<
>
Another popular career path for actuaries is consulting. Consulting actuaries are employed by consulting companies and often work on projects for multiple clients at once. Although projects can vary significantly, consulting actuaries commonly perform audits of clients’ internal insurance departments, provide research and analysis for actuarial-related problems, or fulfill standard actuarial roles like pricing and valuation (when a client lacks the resources to do so in-house). Generally, working as a consulting actuary provides a more dynamic, fast-paced work experience than working as an insurance actuary. Companies with consulting actuaries that commonly hire Penn State actuarial students: Deloitte Consulting,Ernst & Young, KPMG, PwC, Mercer, Wakely Consulting. Consulting actuaries can work in life/health or P&C, so both the SOA and CAS exam paths are appropriate. Non-traditional
<
>
Although most actuaries work in either consulting or insurance, a few choose to work in “non-traditional” actuarial roles. The possible fields for actuaries in non-traditional roles are wide-ranging and can include anything from financial services to technology to energy. If you're interested in learning how other actuaries have applied their unique skillsets outside of insurance and consulting, check out the resources below. Any company that is looking for employees who can solve problems could likely use an actuary. Don't feel limited, with the appropriate toolbox, you can work anywhere! An FSA or an FCAS designation is great to make you employable in a non-traditional setting, but even just an actuarial science major with a couple of exams passed can be enough to get you in the door in a non-traditional setting! |