What Is An Actuary?
Actuaries are professionals who use mathematics, statistics and financial theory to study uncertainty and risk.
They work with institutions such as insurance companies, pension funds, banks and hedge funds to help them develop business strategies. Actuaries are responsible for determining risk, analyzing data and pricing. They help businesses determine how much an insurance plan should cost.
What does the actuary do?
An actuary analyzes risk, data and other financial information to help businesses determine how much an insurance plan should cost.
In addition, actuaries work with insurance companies to manage and predict their risks, which means that they play a role in determining the premiums that policyholders pay for their coverages. Actuaries also work in finance and healthcare.
Actuaries are often known as “insurance analysts.”
Salary
The U.S. Bureau of Labor Statistics projects that the average actuary salary in 2022 will be $105,900 per year, or approximately $50.91 per hour.
In May 2021, the median annual wage for actuaries was $105,900. The median is the wage at which half of the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $63,260, and the highest 10 percent earned more than $206,820.
Actuaries analyze data to estimate future costs of insurance policies and determine appropriate premiums; they also assess financial risks involved in investing.
Job Outlook
According to the BLS, the number of jobs for actuaries is expected to grow 24 percent from 2020 to 2030; this growth rate is much faster than the average for all occupations.
“The BLS predicts that there will be a greater demand for actuarial professionals during this time period than there has been in recent years,” said a report from the American Academy of Actuaries (AAA). “This is due to an increase in retirements and other factors affecting the supply of actuaries.”
Besides, about 2,400 openings for actuaries are expected each year on average over the next decade. Many of those vacancies will be filled by workers transferring from other careers or retiring.
FAQs
Do Actuaries Get Paid Well?
Actuaries are some of the highest-paid people in the world. In fact, according to the U.S.
Bureau of Labor Statistics, actuaries have an average annual salary of $105,900 as of May 2021.
Is It Hard to Become an Actuary?
The short answer is: yes. It's not impossible, but it is a very rigorous and demanding career path.
Actuaries are the number crunchers of the insurance industry.
They use statistics to predict risk and develop policies for people who want to protect themselves against events like death or disability.
Their job requires a lot of math—but also a lot of creativity, because there are so many variables that can affect events like death and disability.
How Many Years Does It Take to Be an Actuary?
It takes 5-7 years to become an actuary. In some cases 10 years.
Is 30, 40 or 50 Too Old to Become an Actuary?
The short answer is: no, you're not.
According to the Bureau of Labor Statistics, the median salary for an actuary is $105K per year—and that's just the median!
If you work your way up through the ranks, your salary could be much higher than that—and if you're really good at what you do, it won't take long for someone to hire you.
So why wouldn't someone want to get started on this career path now?
Can Actuaries Make 500k?
The short answer is yes, actuaries can make 500k. The long answer is that it depends on your career path and what you're willing to sacrifice along the way.
As an actuary, you'll have a lot of opportunities for growth and development. You'll have an opportunity to learn about a wide range of topics, from economics and statistics to math and computer science.
For more info visit
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Is Actuary a Stressful Job?
Yes, being an actuary can be a stressful job.
An actuary is someone who uses statistics and data to predict the future—and predict it accurately. This is a difficult task, as there are many variables that can affect the outcome of any situation.
How Much Do Actuaries Make After 10 Years?
According to
Payscale, the average salary for an actuary is $99,283. The total compensation can vary depending on the industry, location, education level and years of experience.
After 10 years as an actuary in a major metropolitan area with a master's degree and five years' experience, you could expect to earn around $86,500 annually.
However, if you work in a smaller town or city without a master's degree or five years of experience and without any additional certifications, your salary would fall closer to $68,000 per year.
Is Actuary a Good Career?
The job outlook for actuarial science careers is great. The Bureau of Labor Statistics expects a 20% increase in actuarial science jobs by 2028.
What Should I Study to Become an Actuary?
Some actuaries have a bachelor's degree in any subject. Most, however, choose majors in mathematics, actuarial science, statistics, or another analytical field. Courses in economics, statistics, and corporate finance are required to become certified as an actuary.
Are Actuary Exams Hard?
Actuaries must pass a series of difficult tests in order to become fully credentialed. The preliminary exams are 3 hours long and consist of 30-35 multiple choice problems, with a pass rate of 30-40%.
Can Actuary Work From Home?
The job typically requires long hours at the office, so it can be difficult for someone who doesn't live close by to commute every day.
However, if you live in an area where public transportation is available or you can drive yourself to the office without much hassle, then it's possible that you could work from home as an actuary.
Conclusion
I hope this article helped you understand the difference between an actuary and an accountant. Both of them are very important people in a company.
Sources:
https://www.northcentralcollege.edu/news/2021/10/22/actuarial-science-salary-how-much-do-actuaries-make
The top 10 low-stress jobs that pay over $100,000 (cnbc.com)
https://www.mastersportal.com/articles/2732/what-is-actuarial-science-and-should-i-study-an-actuarial-degree-in-2022.html
https://www.geteducated.com/career-center/detail/actuary/
http://instruction.pstat.ucsb.edu/actuary/study.html
