Career Guide

What Does an Actuary Do? Duties, Specialties, and Pay

Actuaries use math and statistics to price risk for insurers, pension funds, and corporations. Here is what the job actually involves, plus BLS pay data.

Last updated 2026-08-03 · Wage data: May 2024 (BLS)

Diagram showing the five actuarial specialty tracks: health, life, property and casualty, pension and retirement benefits, and enterprise risk management.

Core summary

Actuaries use mathematics, statistics, and financial theory to estimate the probability and economic cost of future events (death, illness, accidents, natural disasters) and design insurance policies, pension plans, and risk strategies around those estimates. The role requires passing a multi-year series of professional exams; BLS reports a median annual salary of $125,770 in May 2024.

Actuaries — Annual Wage by Percentile (May 2024, U.S. national)

10th percentile
$75,240
Median
$125,770
90th percentile
$206,430

Source: BLS Occupational Outlook Handbook: Actuaries, May 2024.

Median Annual Wage by Industry (May 2024)

Management of companies and enterprises $133,030
Finance and insurance $126,830
Government (excl. state/local education) $118,910
Professional, scientific, and technical services $111,640

Jobs (2024)

33,600

Outlook (2024-34)

22%

New jobs projected

+7,300

Typical entry education

Bachelor's degree

What the work actually looks like

The Bureau of Labor Statistics describes actuaries as professionals who "use mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty." Concretely, that means compiling and analyzing large statistical datasets, estimating the probability and likely cost of events like death, sickness, accidents, or natural disasters, and using those estimates to design insurance policies and corporate risk strategies that price that uncertainty appropriately.

Day to day, an actuary spends time building and refining statistical models, producing charts, tables, and written reports that translate that modeling into recommendations, and presenting those findings to executives, regulators, or clients who are not statisticians themselves. Communication and the ability to explain a model's assumptions in plain terms is a real, non-optional part of the job, not a side skill.

The five main specialty tracks

Actuarial work splits into a handful of recognized specialties, each with its own professional exam track. Health insurance actuaries estimate the cost of long-term care and health policies based on factors like family medical history and occupation. Life insurance actuaries build life-expectancy estimates for annuities and life policies, incorporating factors like age and tobacco use. Property and casualty actuaries price policies covering property loss and accident or disaster liability. Pension and retirement benefits actuaries evaluate pension plans and help design retirement benefit structures like 401(k) plans; this track additionally requires licensing through the U.S. Department of Labor and Treasury. Enterprise risk management actuaries take a broader view, identifying financial and economic risks to a company's overall objectives rather than pricing a single product line.

Which track an actuary ends up in is usually determined by which exams they choose to sit for as they progress through certification, more than by their initial job placement. It is common to specialize a few years into a career rather than from day one.

The exam-based path to qualification

Entry typically requires a bachelor's degree in mathematics, actuarial science, statistics, or a related quantitative field, with coursework in economics, applied statistics, and corporate finance. What sets actuarial credentialing apart from most professions is the exam sequence administered by the Society of Actuaries (SOA) or Casualty Actuarial Society (CAS): candidates must pass a series of rigorous, difficult exams plus professionalism seminars to earn Associate-level certification, a process the Occupational Outlook Handbook notes can take up to seven years. Reaching Fellow-level certification, the terminal credential, takes additional years beyond that.

Most employers expect candidates to have already passed one or two exams before graduating college, and new hires typically start as trainees under an experienced actuary's supervision, working on basic data compilation before progressing to independent modeling and report writing as they clear more exams.

Frequently asked questions

What does an actuary do on a typical day?

Actuaries compile and analyze statistical data, build models estimating the probability and cost of future events (death, illness, accidents, disasters), and translate those models into reports and recommendations presented to executives or clients. The specific focus depends on specialty: health, life, property/casualty, pension, or enterprise risk.

How long does it take to become a fully qualified actuary?

The BLS Occupational Outlook Handbook states that reaching associate-level certification can take up to seven years, with fellowship (the terminal credential) requiring additional years beyond that. In the U.S., that exam-based certification is administered by the Society of Actuaries or the Casualty Actuarial Society depending on specialty, though BLS itself does not name these organizations by name.

How much do actuaries make?

BLS reports a median annual actuary salary of $125,770 in May 2024, with a wide range by credential level: the bottom 10% earned under $75,240 and the top 10% earned over $206,430.

What are the main actuarial specialties?

Five main tracks: health insurance, life insurance, property and casualty insurance, pension and retirement benefits, and enterprise risk management. Actuaries typically specialize based on which professional exams they sit for as they progress through certification.

This page reports government wage statistics for informational purposes. It is not personalized career, financial, or legal advice, and does not endorse or recommend any specific employer, school, or training program.

Written and edited by Owen Zhang