Through mathematics, statistics, and risk assessment, actuaries help shape the financial health of industries and guide businesses in financial planning and risk management. While actuarial careers are often associated with finance and insurance, actuarial skills can be useful in other industries as well.
Due to the increasing complexity of the global economy, ongoing demographic shifts, and the rise of big data, actuarial skills are now in demand in the consulting, risk management, data science, healthcare, environmental science, and technology fields. This provides individuals considering actuarial science careers with many opportunities to explore different roles.
Part of preparing for an actuarial career is understanding the career options available, the role of education, and actuarial science salary expectations. For those seeking a career in actuarial science, pursuing an advanced actuarial science degree can help them start on the right path.
What Is Actuarial Science?
Broadly speaking, actuarial science is the study of risk and uncertainty. Traditionally, professionals pursuing actuarial careers have focused on financial risk, but they are increasingly working in other areas as well — for example, climate change is a surging topic in actuarial research.
Actuarial science professionals combine mathematics, statistics, finance, and computer science to help entities quantify risks. Practitioners working in actuarial science careers support organizations’ strategic decision-making and contribute to their financial stability by predicting future outcomes. They also contribute to organizations’ product development, investment strategies, and regulatory compliance.
A key actuarial skill is data analysis, specifically the use of probability theory and statistical analysis. By analyzing and interpreting data, actuaries can apply business knowledge to real-world problems, supporting data-driven decision-making. Actuarial professionals must also be able to clearly communicate their findings to a broad business audience.
5 Actuarial Science Career Paths
Actuarial science offers a wide range of career opportunities in various industries. While actuarial career paths can vary based on the type of roles an individual pursues, a common expectation for everyone doing this work is that they have strong analytical and mathematical skills.
Below are five examples of key actuarial career roles.
1. Actuary
Actuaries assess risk and uncertainty using math, statistics, and financial theory. They work mainly in the insurance, consulting, and finance industries designing policies, setting premiums, and evaluating financial outcomes.
Most actuaries start as trainees, gaining experience and passing exams to qualify to move into senior roles, where they may supervise teams or advise management. Some move into executive positions, like chief risk officer or chief financial officer positions.
2. Economist
Economists analyze trends, evaluate data, and predict future economic conditions. Those with actuarial science training can apply their unique insights on monetary and fiscal policy, statistics, and risk assessment to risk modeling and forecasting.
3. Insurance Underwriter
Insurance underwriters assess insurance applications and set insurance coverage limits and premiums. They rely on data and risk analysis to make informed decisions about policies and pricing. Underwriting professionals with strong actuarial skills may shift into more analytical roles in insurance.
4. Financial Analyst
Financial analysts evaluate investment opportunities and risks. They apply their math and statistical knowledge to analyzing data, building financial models, and recommending investment strategies. These analysts often work in banks, investment firms, and insurance companies, guiding their organization’s financial decisions.
5. Predictive Modeler
The growing use of data and the increased importance of advanced analytics is making predictive modeling a key part of actuarial work. Predictive modelers use statistical methods and machine learning to analyze large datasets and forecast trends. In insurance companies, they help create accurate pricing models, assess risks, and detect fraud.
Actuaries with predictive modeling skills are in high demand across industries to work on projects in areas such as automated underwriting, customer segmentation, and marketing optimization.
Actuarial Science Salary and Job Outlook Information
Examining actuarial science salary and job outlook information for the different roles discussed above — actuary, economist, underwriter, financial analyst, and predictive modeler — can help individuals get an idea of what they might earn in the field. It also provides a glimpse into the prospective future employment outlook for individuals pursuing actuarial careers.
Actuary Salary and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for actuaries was $120,000 in May 2023. The BLS projects employment of these professionals to grow 22% from 2023 to 2033, which is much faster than the average growth projected for all occupations (4%).
Economist Salary and Job Outlook
The BLS reports that the median annual salary for economists was $115,730 as of May 2023. The BLS projects 5% employment growth for the profession from 2023 to 2033 — about the same as the average for all occupations.
Insurance Underwriter Salary and Job Outlook
In May 2023, the median annual salary for insurance underwriters was $77,860, according to the BLS. While BLS projections indicate that overall employment of insurance underwriters will decline over the next decade, about 7,800 job openings are expected to be available each year as employers replace workers exiting the profession, including retirees.
Financial Analyst Salary and Job Outlook
The median annual salary for financial analysts varies depending on the type of role. For example, in May 2023, according to the BLS, the median annual salary for financial and investment analysts was $99,010. For financial risk specialists, the median annual salary was $106,090. As for future employment expectations, the BLS projects 9% job growth for financial analysts from 2023 to 2033, surpassing the average for all occupations.
Predictive Modeler Salary and Job Outlook
According to the BLS, the median annual salary for data scientists, including predictive modelers, was $108,020 in May 2023. From 2023 to 2033, the employment growth rate for data scientists is projected to be 36%, much faster than the average.
Prepare for a Successful Actuarial Career
Actuarial science is a multidisciplinary field with many career opportunities for individuals looking to help organizations across various industries solve problems. These roles require professionals with a deep understanding of risk management who stay current on industry trends, technology, and regulations. Earning certifications from the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS) is key to advancing in the field.
Bryant University’s Master of Science in Actuarial Science Online degree program provides the foundation for success. It offers flexible, self-paced learning that prepares students for SOA and CAS certification exams, leading to solid careers in risk management. Courses focus on essential skills in areas such as statistical analysis, predictive modeling, and effective communication.
Learn more about how Bryant University’s program can open doors to a range of actuarial careers.