2026 What Does an Actuary Do? A Guide to the Types of Actuaries

by Imed Bouchrika, PhD

Co-Founder and Chief Data Scientist

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What Does an Actuary Do? Table of Contents

1. Actuary responsibilities, skills, and training
2. Actuary salary and job outlook
3. Types of actuaries and where they work
4. Technology trends changing actuarial work
5. Education pathways for aspiring actuaries
6. Actuarial certifications and exam tracks
7. Actuarial education costs compared with other finance paths
8. Actuarial science vs. accountancy
9. Actuaries compared with similar jobs
10. Accounting credentials that may complement actuarial work
11. Exam preparation strategies for actuarial candidates
12. Financial considerations and return on investment
13. Career alternatives for people who like numbers and finance
14. Soft skills actuaries need
15. Ethical and regulatory expectations
16. Interdisciplinary study options that can broaden actuarial skills

Quick Answer: What Does an Actuary Do?

An actuary uses mathematics, statistics, financial theory, and business data to estimate the likelihood and financial impact of future events. In practical terms, actuaries help set insurance premiums, forecast claims, evaluate pension and retirement obligations, model healthcare costs, analyze enterprise risks, and advise leaders on decisions where uncertainty could affect financial stability.

Most actuaries work in insurance, consulting, healthcare, finance, government, or enterprise risk management. The career usually requires a bachelor’s degree in a quantitative field and a long sequence of professional exams through organizations such as the Society of Actuaries or the Casualty Actuarial Society.

What Does an Actuary Do: Responsibilities and Training

Actuarial work remains a specialized but important part of the U.S. labor market. According to updated figures, approximately 30,000 actuaries were employed in the United States in recent years (U.S. Bureau of Labor Statistics, 2025). Their value comes from translating uncertainty into financial estimates that executives, regulators, insurers, and public agencies can use to make decisions.

Core Responsibilities of an Actuary

Actuaries do more than calculate probabilities. They build models, test assumptions, evaluate financial exposure, and explain what the numbers mean for pricing, reserves, budgets, regulations, and long-term planning. A strong background in statistics, probability, finance, and mathematics is central to the role, which is why many students explore math degrees for actuaries or closely related quantitative programs.

Skills Actuaries Need

Because actuaries work at the intersection of data, finance, and decision-making, technical ability alone is not enough. The strongest candidates can explain complex findings clearly, collaborate across departments, and defend their assumptions under scrutiny.

• Communication: Actuaries must translate technical results into language that executives, clients, regulators, and operating teams can understand. Students who want to strengthen audience analysis, persuasion, or digital communication may also explore options such as an associate degree in digital marketing, although actuarial roles still require a much heavier quantitative foundation.
• Problem-solving: Actuaries are often asked to make decisions with imperfect information. They must identify the main risk drivers, test scenarios, and recommend practical responses.
• Analytical thinking: The job requires pattern recognition, statistical reasoning, and careful judgment about what the data does and does not prove. These skills also apply in adjacent fields, including programs such as nonprofit management online, where leaders use data to guide organizational decisions.
• Attention to assumptions: Small changes in mortality tables, claims trends, discount rates, utilization rates, or economic assumptions can materially change results.
• Business judgment: Good actuaries understand that a technically correct model is only useful if it fits the business problem, regulatory environment, and decision timeline.

Education and Training

Actuarial careers require formal education, self-directed exam preparation, and ongoing professional development. Recent data indicate that actuarial science and related programs continue to produce a steady stream of graduates each year, reflecting sustained interest in the field (Data USA, 2025). Common undergraduate majors include actuarial science, mathematics, statistics, finance, and economics.

A bachelor’s degree typically takes four years, although the exact duration of a college semester and overall timeline can vary by school, transfer credits, and enrollment status. Students unsure about a highly quantitative path sometimes compare actuarial science with alternatives such as how to become a business analyst with no experience, especially if they prefer business process analysis over professional actuarial exams.

Many students begin taking preliminary actuarial exams while still in college. After entering the workforce, candidates continue preparing for exams while gaining experience. Becoming an associate generally requires completing a total of seven actuarial exams, while fellowship status requires three or more additional exams. The full process can take six to ten years (Be An Actuary, n.d.), and actuaries must also meet continuing education expectations throughout their careers.

Actuary Job Outlook and Salary

Demand for actuarial talent remains strong. Recent projections indicate that employment for actuaries is expected to grow by about 23% in 2032, with roughly 2,300 job openings each year (U.S. Bureau of Labor Statistics, 2025). This outlook reflects the continued need for professionals who can evaluate insurance risk, healthcare costs, retirement obligations, financial uncertainty, and enterprise risk.

The BLS (2023b) reports an actuary median salary of $127,580 per year. Annual wages range from $71,760 at the 10% percentile to $199,300 at the 90% percentile. Actual pay depends on several factors, including exam progress, credential level, industry, location, years of experience, specialization, and whether the role is in consulting, insurance, government, or corporate risk management.

Top-Paying States and Industries for Actuaries

Location can affect compensation. New Hampshire, New York, North Carolina, Connecticut, and Massachusetts are listed among the highest-paying states for actuaries, with yearly earnings of around $160,090 to $144,020 (BLS, 2023b).

Industry also matters. Legal services, computer systems design, credit intermediation, the federal executive branch, and accounting, tax preparation, bookkeeping, and payroll services are among the leading high-paying industries for actuaries, with annual earnings ranging from $248,590 to $143,430.

What Does an Actuary Do: Types and Roles

Actuarial science is not a single job. It is a professional field with several practice areas. Some actuaries price insurance products, some evaluate pensions or benefits, some advise governments, and others work on enterprise-wide risks. This variety is one reason the field is often included among strong business careers for people with advanced quantitative skills.

Common Actuarial Specializations

Property and Casualty Insurance Actuaries

Property and casualty actuaries focus on losses tied to accidents, liability, property damage, and similar events. They help determine premium rates, evaluate claims patterns, and test whether an insurer has enough reserves to meet future obligations.

Life Insurance Actuaries

Life insurance actuaries analyze mortality, life expectancy, interest rate assumptions, and policyholder behavior. Their work supports the design and pricing of life insurance products intended to remain financially sustainable over long periods.

Enterprise Risk Management Actuaries

Enterprise risk management actuaries look beyond a single insurance product. They evaluate risks that may affect an entire organization, including market volatility, liquidity pressures, geopolitical uncertainty, operational risk, and broader financial exposure. Their goal is to help leaders understand how different risks interact and how to protect long-term stability.

Public Sector Actuaries

Public sector actuaries work on programs that affect large populations, such as public pensions, social insurance systems, healthcare financing, and federal or state benefit programs. Their work may support policy design, rate review, program sustainability, or regulatory oversight.

Health Insurance Actuaries

Health insurance actuaries evaluate medical costs, utilization patterns, demographic trends, and health plan risk. They may work with hospitals, health insurers, government health agencies, and employers that sponsor health benefits.

Emerging Trends and Technology Shaping the Actuarial Profession

Actuarial work is becoming more data-intensive and technology-driven. Traditional actuarial judgment still matters, but employers increasingly expect actuaries to understand modern analytics tools, automation, cybersecurity risk, and new forms of business uncertainty.

Advanced Analytics and Artificial Intelligence

Actuaries have long used statistical models, but artificial intelligence and machine learning tools are expanding how large datasets can be analyzed. These tools can help identify patterns, improve predictive modeling, and support faster scenario testing. The key challenge is not simply using AI; it is understanding whether a model is explainable, appropriate, ethical, and reliable enough for financial decision-making.

Automation in Risk Assessment

Automation can reduce time spent on repetitive work such as data cleaning, report generation, and preliminary calculations. This does not eliminate the need for actuaries. Instead, it shifts more value toward model review, assumption testing, business interpretation, and communication with decision-makers.

Blockchain and Data Integrity

Blockchain-related tools may influence insurance and actuarial work by improving data traceability, claims documentation, and fraud controls. For actuaries, better data integrity can support more reliable pricing and reserving, but the usefulness of blockchain still depends on implementation, governance, and adoption within a specific organization or market.

Cyber Risk and ESG Considerations

Cyber risk has become a major concern as organizations rely more heavily on digital systems. Actuaries may help estimate potential losses, price cyber insurance products, or analyze the financial effect of cyber incidents. Environmental, social, and governance considerations also affect long-range risk analysis, especially where climate-related claims, regulatory expectations, or investment assumptions are involved.

Non-Traditional Actuarial Roles

Although insurance remains a major employer, actuarial skills are increasingly useful in healthcare, technology, enterprise risk management, analytics, and consulting. Students who want a broader business foundation may compare actuarial preparation with related options such as an accelerated associate's degree in accounting, but they should recognize that actuarial roles require deeper probability, statistics, and exam preparation.

Continuous Upskilling

Actuaries who want to remain competitive should be ready to learn programming, data visualization, model governance, and emerging risk tools. Python, R, spreadsheet modeling, database skills, and clear presentation of analytical results can make a measurable difference in early-career performance.

Educational Pathways and Degrees for Aspiring Actuaries

There is no single required undergraduate major for every actuarial role, but the path is more structured than many business careers because professional exams are central to advancement. The strongest preparation usually combines quantitative coursework, exam preparation, internships, and practical software skills.

Bachelor’s Degree Options

Most candidates study actuarial science, mathematics, statistics, finance, economics, or a closely related field. Actuarial science programs may align more directly with professional exams, while mathematics or statistics degrees may offer broader flexibility for data science, graduate study, or other quantitative careers.

Internships and Practical Experience

Internships are especially valuable because they show employers that you can apply classroom knowledge to real data, deadlines, and business questions. A strong internship can also clarify whether you prefer insurance pricing, consulting, healthcare analytics, pension work, or enterprise risk.

Continuing Education

Actuaries must keep learning after they are hired. Exam progress, continuing education, regulatory updates, new modeling methods, and software changes are all part of the profession. This is one reason actuarial science is better suited to people who are comfortable studying while working full time.

Certifications for Actuaries

Professional credentials signal that an actuary has met rigorous technical and professional standards. The two main U.S. credentialing paths are commonly associated with the Society of Actuaries and the Casualty Actuarial Society, with the appropriate route depending on the type of actuarial work you plan to do.

How Do Actuarial Education Investments Compare to Alternative Financial Disciplines?

The actuarial path can be financially rewarding, but it requires a long investment in exams, study materials, and professional development. Students should compare not only tuition but also exam fees, preparation materials, time spent studying, opportunity cost, and the likelihood that they will persist through the exam sequence.

Some students considering finance or accounting careers may find a lower-cost entry route through online programs. For example, comparing the cost of online accounting degree options can help you understand how actuarial preparation differs from accounting, auditing, tax, and compliance pathways.

Should I Consider Accountancy as an Alternative to Actuarial Science?

Accountancy can be a strong alternative if you like financial information but prefer auditing, tax planning, compliance, reporting, and business controls over probability-heavy risk modeling. Actuaries estimate uncertain future costs; accountants verify, organize, and interpret financial records within reporting and regulatory frameworks.

If you are deciding between the two, compare the daily work, certification requirements, and long-term advancement patterns. A student wondering why choose a career in accountancy may discover that accounting offers a broader range of entry-level roles, while actuarial science offers a more specialized quantitative track.

Actuaries Compared to Similar Jobs

Actuaries overlap with financial analysts, statisticians, management analysts, and accountants, but their central focus is distinct: they estimate financial risk tied to uncertain future events. The comparison below can help you choose the right academic and career path.

Salary comparisons can be useful, but they should not be the only factor. Recent data show that the average salary of a management analyst—a common path for business management graduates—is about $111,000 per year (U.S. Bureau of Labor Statistics, 2025). These roles may share employers such as banks, accounting firms, government agencies, and corporate offices, but actuaries remain especially connected to insurance and risk-bearing industries.

The insurance industry continues to expand globally and is projected to reach nearly $10 trillion in value in the coming years (BCC Research, 2025). That market context helps explain why actuarial expertise remains valuable, particularly in areas where pricing, claims, regulation, and long-term liabilities are central business concerns.

Should Actuaries Consider Complementary Accounting Certifications?

Some actuaries benefit from accounting knowledge, especially if they work in financial reporting, consulting, regulation, enterprise risk, or leadership roles. Understanding accounting rules can improve communication with finance teams and help actuaries connect risk models with financial statements.

Pursuing a credential such as becoming a CPA may make sense for actuaries whose work regularly touches audit, statutory reporting, tax, financial controls, or executive-level financial analysis. It is not necessary for every actuary, and it should be weighed against the time required for actuarial exams.

What Are the Most Effective Exam Preparation Strategies for Aspiring Actuaries?

Actuarial exams are a major filter in the profession. A strong study plan should be realistic, exam-specific, and built around repeated practice rather than passive reading.

• Start with the exam syllabus: Identify the exact topics tested and organize your study calendar around them.
• Use active problem-solving: Work through practice problems regularly instead of only reviewing notes.
• Schedule mock exams: Timed practice helps reveal pacing problems and weak topics before test day.
• Track errors: Keep a log of missed questions and categorize them by concept, formula, or misreading.
• Join study groups carefully: Groups can help with accountability, but they should not replace independent problem practice.
• Balance work and study: Candidates already employed should protect study blocks and avoid relying on last-minute preparation.

Some candidates strengthen their broader finance background through advanced study, including affordable masters in finance online programs. However, graduate coursework should be treated as a supplement, not a substitute for targeted actuarial exam preparation.

The Financial Implications of Pursuing an Actuarial Career

Before committing to actuarial science, evaluate both the costs and the payoff timeline. The career can offer strong earnings, but the path requires tuition, exam fees, study materials, and years of disciplined preparation.

Educational Costs

The path usually begins with a bachelor’s degree in actuarial science, mathematics, finance, statistics, economics, or a related field. Tuition varies by school type and residency status. Common planning ranges include:

• In-state public universities: $10,000–$15,000 per year.
• Private universities: $30,000–$50,000 per year.

Actuarial exam costs add another layer. Each exam costs between $250 and $500, and preparation materials or study courses can add another $1,000–$2,000 per exam.

Starting Salaries

According to the Bureau of Labor Statistics, entry-level actuaries earn a median annual salary of $72,000–$85,000, depending on location and industry. For comparison, the average finance major salary is approximately $55,000. These figures suggest strong earning potential, but salary outcomes are not guaranteed and depend on exam progress, employer, region, and performance.

Long-Term Earnings Potential

Actuarial compensation often increases as professionals pass exams, gain experience, and assume more complex responsibilities. Common salary ranges discussed for career planning include:

• Associate Actuaries: $100,000–$150,000 annually.
• Fellow Actuaries: $150,000–$250,000 annually, with top earners exceeding $300,000.

Specialization can influence earnings. Enterprise risk management and health insurance roles may offer higher compensation than some traditional life insurance roles, though this varies by employer and market.

Career Advancement and Employer Support

Many actuarial employers support exam progress through paid study time, exam reimbursement, or salary increases tied to passing exams. This support can reduce the financial burden, but candidates should ask employers for the exact policy before accepting an offer.

Is an Actuarial Career Worth It?

An actuarial career may be worth it if you are comfortable with advanced math, long-term exam preparation, and analytical work tied to real financial decisions. It may not be worth it if you want a quick credential, dislike standardized exams, or prefer less technical business roles.

What Are the Career Alternatives for Individuals Interested in Numbers and Financial Analysis?

If you like numbers but are not sure about actuarial exams, compare actuarial science with related careers before committing. Accounting, financial analysis, data science, economics, business analytics, and management consulting all use quantitative reasoning, but they differ in daily work, credentialing, and career culture.

Accounting may be appealing if you want a clearer connection to financial statements, audit, tax, or compliance. Reviewing the accountant salary landscape can help you compare compensation expectations with actuarial earnings. Financial analysis may fit students interested in investments and corporate finance, while data science may suit those who prefer programming and machine learning over insurance or pension work.

What Essential Soft Skills Do Actuaries Need to Succeed?

Actuaries need strong technical ability, but career growth often depends on how well they communicate, prioritize, and collaborate. A technically accurate model has limited value if stakeholders do not understand its assumptions, limitations, and implications.

• Clear explanation: Actuaries must make complex risk findings understandable to non-actuaries.
• Professional skepticism: They need to question data quality, assumptions, and model outputs.
• Collaboration: Actuarial work often involves finance, underwriting, claims, legal, product, executive, and regulatory teams.
• Time management: Balancing job duties with exam preparation requires disciplined scheduling.
• Adaptability: Regulations, data sources, technology, and market conditions can change quickly.

Students still building foundational academic skills may compare quantitative degree options with broader starting points such as easy associate degrees, but actuarial roles ultimately require advanced math and exam readiness.

What Regulatory and Ethical Standards Must Actuaries Uphold?

Actuaries are trusted because their work can affect insurance pricing, reserves, public programs, employer benefits, and consumer financial protection. They must follow professional standards, disclose assumptions clearly, protect confidential information, manage conflicts of interest, and avoid presenting model results as more certain than they are.

Ethics also matters when using AI or advanced analytics. Actuaries should understand data limitations, bias risks, privacy obligations, and the consequences of automated decisions. Students comparing related regulated professions can review how to become an accountant to understand how financial careers differ in compliance expectations.

What Interdisciplinary Educational Paths Can Enhance an Actuary’s Skill Set?

Interdisciplinary education can help actuaries communicate better with business teams, understand industry-specific risks, and move into management or consulting. Useful complementary areas may include finance, accounting, computer science, economics, public health, data analytics, law, or management.

Some students also explore less traditional business programs for leadership or market context. For example, an affordable bachelor in sports management online may build knowledge of operations, marketing, and organizational leadership. However, it should be viewed as complementary study rather than a replacement for the quantitative preparation expected in actuarial roles.

Common Mistakes to Avoid When Planning an Actuarial Career

Questions to Ask Before Choosing an Actuarial Path

• Do I enjoy probability, statistics, calculus, finance, and long problem sets enough to study them for years?
• Am I willing to prepare for professional exams while working full time?
• Does the degree program I am considering offer coursework aligned with actuarial exams?
• What internship support, employer relationships, and actuarial student organizations does the school offer?
• Which actuarial track interests me most: life, health, pension, property and casualty, public sector, or enterprise risk?
• How much will tuition, exam fees, study materials, and delayed advancement cost me?
• Would I be happier in accounting, finance, analytics, consulting, or another quantitative business career?
• If I decide actuarial science is not for me, will my degree still give me flexible career options?

Actuaries: A Career Built on Risk, Evidence, and Professional Development

Actuaries help organizations make better decisions when the future is uncertain. Their work supports insurance pricing, healthcare planning, pension sustainability, enterprise risk management, and public policy. The career can offer strong compensation and job growth, but it requires a serious commitment to quantitative study and professional exams.

If actuarial science interests you but you are still exploring business careers, compare it with consulting, accounting, financial analysis, and business analytics. You may also find it useful to revisit how to become a business consultant if you prefer advisory work with a broader strategy focus.

Key Insights

• Actuaries specialize in financial risk: They use statistics, mathematics, and financial theory to estimate uncertain future costs and guide decisions.
• The career outlook is strong: Employment is projected to grow 23% by 2032, with roughly 2,300 openings each year (U.S. Bureau of Labor Statistics, 2025).
• Pay can be high, but it varies: The median annual salary is $127,580, with reported wages ranging from $71,760 to $199,300 by percentile.
• Credentials matter: A bachelor’s degree can start the path, but associate and fellowship credentials require years of exams and continuing education.
• Specialization shapes the job: Life, health, property and casualty, enterprise risk, and public-sector actuaries solve different problems and work in different settings.
• Technology is changing expectations: AI, automation, cyber risk, ESG analysis, and advanced analytics are making data and model governance skills more important.
• The path is not for everyone: Students who dislike long exam sequences or highly quantitative work may prefer accounting, finance, analytics, or consulting.
• The best decision is fit-based: Choose actuarial science if you enjoy risk modeling, disciplined study, and applying math to high-stakes financial decisions.

References:

• BCC Research. (n.d.). Global insurance industry market. https://www.bccresearch.com/market-research/finance/insurance-industry-market.html
• Be An Actuary. (n.d.). Answers to your frequently asked questions. https://www.beanactuary.org/what-is-an-actuary/fast-facts-about-actuaries
• Data USA. (n.d.). Actuarial science. https://datausa.io/profile/cip/actuarial-science
• Glassdoor. (2023a, June 14). How much does a property and casualty actuarial consultant make? https://www.glassdoor.com/Salaries/property-and-casualty-actuarial-consultant-salary-SRCH_KO0,42.htm
• Glassdoor. (2023b, June 14). How much does an actuary healthcare make? https://www.glassdoor.com/Salaries/actuary-healthcare-salary-SRCH_KO0,18.htm
• U.S. Bureau of Labor Statistics. (2025). Actuaries. Occupational Outlook Handbook. https://www.bls.gov/ooh/math/actuaries.htm
• Data USA. (2025). Actuarial science. https://datausa.io/profile/cip/actuarial-science
• Salary.com. (2025). Actuarial manager salary. https://www.salary.com/research/salary/benchmark/actuarial-manager-salary
• U.S. Bureau of Labor Statistics. (2025). Management analysts. Occupational Outlook Handbook. https://www.bls.gov/ooh/business-and-financial/management-analysts.htm
• World Health Organization. (n.d.). COVID-19 dashboard. https://covid19.who.int