What is the role of an Actuary?
The profession of an actuary deals with the analysis of financial costs related to risks and uncertainties. Essentials such as mathematics, finance, and statistics are required to assess and understand the risk of certain events. It also includes the development of policies for potential clients to minimize cost differences and effects. Mostly required by the insurance industry, actuaries also contribute their skills in healthcare, banking, and non-financial sectors.
What is Actuarial Science?
Actuarial science refers to a discipline that manages financial risks, especially in the insurance field, with elements from statistics and mathematics. This specific discipline is unique as it applies concepts of probability and statistics. Actuarial science is mainly required to define, understand and analyze financial implications related to uncertain events in the future. Actuary science salary varies as it is mostly used in two departments:
Traditional life insurance requires actuarial science mainly to understand the analysis of mortality, access life tables, and apply compound interest to manage principal management. The creation of policies and determining the annuities of an insurance industry falls under the purview of actuarial science.
In terms of health insurance, analysis of rates is performed with the help of actuarial science.
- Frequency or morbidity in terms of occurrence of a disease
- Mortality rate
- Fertility rate
The costs related to design, funding, accounting, and administration can only be understood if one knows actuarial science in the pension industry. Bonds, pension plans, and tax laws also fall under the viability of this discipline. Trends and economic conditions can be easily maintained with the help of an actuarial science specialist.
What is the Average Salary of an Actuarial Science Specialist?
According to the reports of May 2020 by the US Bureau of Labour Statistics (BLS), the actuarial science salary leads up to $111,300. However, current reports suggest that the average salary has dropped to $101,627. Based on five salary surveys, men in the US receive a salary up to $ 86,023. However, women are currently at the top, with an average actuarial science salary of $131,035.
What is the Average Salary of a Beginner Actuary?
The average salary of an Actuary at the entry level is around $74,601. The salary range, however, can be classified between $65,901 and $82,401. This comparison depends on various factors such as your education qualification, certificates, necessary skills, and the tenure of your profession.
Actuary salary is increased once the beginner meets the following criterion:
- Having knowledge related to mathematics, statistics, finance
- Understanding risk factors related to health, insurance, pension, and annuities
- Having work experience of over 1-2 years
What is the Average Salary of an Experienced Actuary?
Per reports of June 28, 2022, the average actuary salary with top-level experience is around $356,116. However, the range takes place between $298,160 and $423,955.
Since these actuaries conduct the topmost layer, the range in the salary tends to differ. The following criterion includes:
- Manages a broad corporate segment
- Has functional objectives
- 8+ years of managerial experience
- Comprehensive Knowledge
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What is the ranking of this job profile?
Ranking currently at #7 in Best business jobs signifies the high-end actuary salary in the present world. The current rankings for Actuaries are:
- #7 in Best Business Jobs
- #11 in the Best STEM Jobs
- #20 in 100 Top Jobs
- #24 in the Best Paying Jobs
Hence, the role of an Actuary can be regarded as a reputable profession in the United States.
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How long does it take to become an actuary?
Planning to take up actuary as a profession is a long journey. 7-10 years is the time required in order to complete the qualifications to become an actuary. In the US, people spend over 3-5 years to finish their Bachelor’s degree and 7-10 years to pass all the ten actuary exams. These ten professional exams are extremely difficult to crack, and almost 40%-60% failure rates have been observed. This exam can be taken twice a year, so it is essential to finish them on time.
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What are the advantages of becoming an actuary in the US?
There are several advantages as to why becoming an actuary in the USA can be one of your best career decisions. The following are:
- A diverse set of roles and responsibilities:
One of the most interesting professions, an actuary, must deal with different roles and responsibilities regularly. With high advancements in already several disciplines, they are ready to be a part of multiple roles such as statistics and mathematics. A unique skillset and application of these elements in various roles make an actuary “jack of all trades and master of all”.
- Career advancement opportunities:
The extensive development of experience is the key reason why an actuary can create career advancements across various fields. Professions such as actuarial service directors and specialists can be easily applied at the beginner level. Those with experience of several years can perform the role of an educator to upgrade the financial sector. Career consulting is also another exciting option for actuaries.
- Ability to specialize everywhere:
Both the education as well as the professional sector gets benefitted when it comes to actuaries. They can specialize in life insurance, retirement funds, and predictive analysis. One can easily have different specialties throughout their professional journey or be a part of only one expertise. There are several options when it comes to actuarial science:
– Employment Benefits
– Corporate Lifestyles
– Product Development
– Property Management
– International Tie
- High Projections Related to Job Growth:
According to reports from the Bureau of Labor Statistics, the job growth in this sector is over 24% through the year 2030. This is comparatively the job with the fastest growth rate all across the United States. Several opportunities can be easily received after completing the actuary exams.
- Competitive Salary:
The eye-catching dimension out of all is the actuary salary. An actuary can receive a high range of opportunities along with a massive financial package according to their education and qualifications.
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What problems does an actuary solve?
An actuary deals with financial implications related to risk and uncertainty so that the industry or company does not lead to an undesirable future.
What data does an actuary use?
An actuary’s profession deals mainly with elements of mathematics, statistics, and finance. It is mostly used to calculate the probability of events so that the company's future does not remain at stake.
Are actuaries in decline?
Due to the pressures in the industry, regardless of being one of the topmost professions in the globe, people are not planning their professions as actuaries. But if thought about the benefits, mathematics, statistics, and finance students can consider it a career option.