Actuary Job Description
Summary: With his/her experience in business, finance, probability theory, statistics and economics, an actuary is a person who evaluates, manages and advises companies about financial risks. About ¼ of actuaries work in consulting firms and rating agencies. Majority of actuaries are hired by insurance companies to calculate the financial risk from property loss due to natural disasters, accidents, sickness, injuries or the death of the insured. These calculations are used in determining premium rates of policyholders.
Duties of an Actuary: The work of actuaries involve ascertaining premium rates required by policyholders to ensure future payments; analyzing statistical information to determine sickness, retirement, disability, accident or mortality rate estimates; designing, reviewing and administering insurance, pension and annuity plans; determining financial soundness of new clients; helping in the development of company policies; testifying in court as expert witness in cases related to finances and working as a freelance consultant to provide financial advice to clients.
Other tasks of an actuary may include determining policy contract provisions for a particular type of insurance, explaining changes in contract provisions to policyholders and other customers, managing credit, creating and presenting reports to managers, monitoring risks related to investment banking, developing new financial products, conducting valuations of liabilities and assets; calculating funding rates for pensions schemes; overseeing profit testing and product development; supervising staff; and measuring, mitigating and monitoring portfolio, among others.
Education and Training Requirements for an Actuary Job: To become an actuary, candidates must obtain a bachelor’s degree in accounting, actuarial science, finance, economics, and other fields with a focus in statistics and mathematics. Actuaries must pass several examinations throughout their careers – two of these exams can be taken while in college, while the rest are administered after graduation or even if working as an actuary.
Knowledge and Skills Requirements for an Actuary Job: To become successful in this field, an actuary must have strong mathematical skills, well-rounded analytical skills, excellent time management and organizational skills, analytical and problem-solving skills, effective written and verbal communication skills, presenting and negotiating skills, interpersonal skills, advanced computer skills and knowledge of industry practices, procedures and financial laws.
Working Conditions: Actuaries work 35 to 40 hours per week in an office setting. They may work longer hours and during weekends when necessary. The work of actuaries is demanding and comes with a great deal of responsibility. When an actuary works as a consultant, his/her job may involve a lot of travel to meet with clients. Fully qualified actuaries employed by firms may also be required to travel to conventions, meetings and other industry events.
Salary of an Actuary: The salary of actuaries range between $54,700 and $107,600, with an average of $90,000 per year. This salary can vary greatly due to company size, industry, location, experience, certifications and benefits.
